Key decisions for a continuous review system relate to the order quantity and the reorder point.

Question

Quizplus · Accepted Answer

The order quantity and the reorder point are critical factors to consider when implementing a continuous review system. The order quantity refers to the amount of inventory that is ordered when the current inventory level reaches a specific point, while the reorder point is the level at which the inventory should be replenished. These factors need to be carefully decided upon to ensure that the system operates efficiently and effectively, helping the organization to maintain the desired inventory levels while minimizing the risk of stockouts or excess inventory.

Key Decisions for a Continuous Review System Relate to the Order