Question

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 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 periods.

Answer 1

The answer is letter D

Step-by-step explanation:

Under a P system, an order is placed to replenish the inventory position up to the target level T every P time periods.