An Inventory System Answers Two Important Questions: When to Order

question 50

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 period.

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Definitions:

Branding

involves creating a distinct image, identity, and reputation for a product, service, or organization in the mind of the target audience, using elements such as logos, messaging, and design.

Rational Ways

Approaches or methods guided by logic and reason, often emphasizing the importance of evidence-based decision-making.

Intrinsically Unethical

Refers to actions or behaviors that are inherently wrong or immoral by nature, regardless of context or consequences.

Branding

The marketing practice of creating a name, symbol, or design that identifies and differentiates a product or company from others.