In the continuous review system, order quantity tends to be fixed, and order time is variable.This is reversed in a periodic review system.

Question

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In a continuous review system, the order quantity is typically fixed and determined by the economic order quantity or a similar rule, and orders are placed whenever inventory levels hit a predetermined reorder point, making the order time variable. In contrast, in a periodic review system, inventory levels are checked at fixed intervals (making the review time fixed), and the order quantity varies depending on the current inventory level and the target inventory level.

In the Continuous Review System, Order Quantity Tends to Be