What Is the Difference Between P and Q Inventory Systems

question 230

Multiple Choice

What is the difference between P and Q inventory systems?

• A) order size
• B) order spacing
• C) maximum service level
• D) lead time length
• E) A and B

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Definitions:

P(A or B)

The probability of event A happening, event B happening, or both events happening.

P(A)

Denotes the probability of event A happening.

P(B)

The probability notation referring to the likelihood of event B occurring.

Independent

Not influenced by or contingent upon others; describes variables that operate without interference from other variables.