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:

Cast Bronze Valves

Valves made through casting, a manufacturing process in which a liquid metal is poured into a mold that has the shape of the part needed, using bronze as the material.

Labour Hour

A unit of work measure representing the output or work done by an individual in one hour.

Productivity

A measure of the efficiency of production, often quantified as the ratio of output produced relative to input used in the production process.