Which One of the Following Statements Concerning a Continuous Review

question 152

Multiple Choice

Which one of the following statements concerning a continuous review system is best?

• A) The inventory position (IP) of an item measures the item's ability to satisfy future demand, relying only on the on-hand inventory.
• B) An item's inventory position under a continuous review system increases by Q units as soon as an order is received.
• C) An item's on-hand inventory increases by Q units as soon as an order is placed.
• D) Under a continuous review system, an item's inventory position corresponds to the on-hand inventory unless there are backorders or one or more scheduled receipts.

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Definitions:

Well Educated

Describes a person who has undergone extensive formal education, possessing a wide range of knowledge and intellectual skill.

Middle-class

A socioeconomic group between the working class and the upper class, typically associated with a moderate level of income, education, and occupational prestige.

SIDS

Sudden Infant Death Syndrome is the unexpected demise of an apparently healthy infant under one year old, typically occurring during sleep without any clear reason.

Sudden Unexplained Death

The occurrence of death without an obvious cause, determined after thorough investigation and autopsy.