Which one of the following statements is best?
A) A P system requires more safety stock than a Q system.
B) A P system lends itself more to quantity discounts than does a Q system.
C) A P system requires more administrative control and computer support than does a Q system.
D) In a periodic review system, the value of Q is kept the same from one cycle to another.

Question

Quizplus · Accepted Answer

A P system (periodic review system) typically requires more safety stock than a Q system (continuous review system) because orders are placed at fixed intervals, and the inventory level can fluctuate more widely due to varying demand during these intervals. This necessitates a larger safety stock to avoid stockouts.

Which One of the Following Statements Is Best