In a Periodic Review System,the Order Up to Level

question 85

Multiple Choice

In a periodic review system,the order up to level

• A)equals the current inventory level plus the lot size ordered.
• B)equals the current inventory level minus the lot size ordered.
• C)equals the current inventory level plus the anticipated demand during lead time.
• D)equals the current inventory level plus the anticipated demand during lead time plus the lot size ordered.

---

Definitions:

Special Equipment

Tools, machinery, or devices designed for specific tasks or operations, often requiring specialized knowledge or skills to use effectively.

Contribution Margin

The surplus of sales revenue over variable costs, showing the extent to which revenue aids in covering fixed costs and generating profit.

Financial Advantage

The benefit gained in a financial context, such as lower costs, higher revenues, or competitive superiority.

Outside Supplier

An entity or company that provides goods or services to another company from outside the purchasing company's internal structure.