Under a Periodic Review System, Enough Inventory Must Be Carried

question 36

Multiple Choice

Under a periodic review system, enough inventory must be carried to protect against stockout for the ___________.

• A) replenishment lead time
• B) review period
• C) replenishment lead time plus the review period
• D) bottleneck cycle time
• E) bottleneck cycle time plus the replenishment lead time

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Definitions:

Substance

A fundamental or essential component of a matter; often refers to the material from which something is made.

Gift Causa Mortis

A gift made in contemplation of imminent death where the giver transfers personal property to another, with the gift becoming permanent if the giver dies as contemplated.

Exclusive Possession

The right of an individual or entity to use and control property to the exclusion of others.