Which One of the Following Statements About Inventory Control Systems

question 57

Multiple Choice

Which one of the following statements about inventory control systems is TRUE?

• A) A two-bin inventory system is essentially a P system because the inventory is reviewed only on a periodic basis.
• B) An optional replenishment system is particularly attractive when both review and ordering costs are significant.
• C) Visual systems are difficult to administer because records on current inventory position have to be kept for every item.
• D) Overstocking is quite common for those items that are managed by using the base-stock system.

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