An Inventory System Answers Two Important Questions: When to Order

question 22

Multiple Choice

An inventory system answers two important questions: when to order and how much to order. Which of the following statements correctly explains how a Q system (continuous review system) or a P system (periodic review system) answers these questions?

• A) Under a Q system, a fixed quantity is ordered every P time period.
• B) Under a Q system, an order is placed to replenish the inventory position up to the target level T when the inventory position reaches the reorder point R.
• C) Under a P system, a fixed quantity Q is ordered when the inventory position reaches the reorder point R.
• D) Under a P system, an order is placed to replenish the inventory position up to the target level T every P time periods.

---

Definitions:

Superior Surface

The uppermost or above-mentioned part or face of an object or anatomical structure.

Kidney

A bean-shaped organ that excretes urine and is located retroperitoneally, high in the back of the abdominal cavity.

Adrenal

Relating to the adrenal glands, which are small glands located above the kidneys responsible for producing hormones that regulate metabolism, immune system, blood pressure, and stress responses.

Sex Hormones

Biological compounds that play a crucial role in sexual development, reproduction, and secondary sexual characteristics.