Which of the Following Statements Is True About a Q

question 51

Multiple Choice

Which of the following statements is true about a Q system?

• A) It does not have a reorder point but rather a target inventory.
• B) The system is completely determined by the two parameters Q and R.
• C) It does not have an EOQ because the quantity varies according to demand.
• D) The order interval is fixed-not the order quantity.

---

Definitions:

Rent Payment

Monetary compensation paid by a lessee to a lessor for the use of a particular property, piece of equipment, or facility.

Land Supplied

Land supplied indicates the quantity of land offered for use or development, affected by factors like pricing, zoning regulations, and market demand.

Rationing Function

The ability of market prices to allocate scarce resources efficiently among competing uses.