Question

"Using the periodic review system the target level is:

A) forecast demand during the review period.
B) forecast demand during lead time.
C) the sum of A and B.
D) the sum of A and B plus the safety stock.
E) none of the above"

Answer 1

The target level in the periodic review system is the forecast demand during the review period.

Step-by-step explanation:

In the periodic review system, the target level is the forecast demand during the review period. This means that the target level represents the expected demand for a product or item during a specific time period when a review or evaluation is conducted. It does not include the forecast demand during lead time or the safety stock. Therefore, the answer is A) forecast demand during the review period.