Which of the following is correct?
A) order quantities are fixed in the periodic review system
B) the two-bin system is an example of the order point system
C) the safety stock does not depend upon the frequency of reorder
D) all of the above are true
E) none of the above is true

Question

Quizplus · Accepted Answer

A) This statement is incorrect. In the periodic review system, order quantities can vary depending on the inventory level at the time of review.
B) This statement is correct. The two-bin system is an example of the order point system, in which an item is reordered when the inventory level drops to a certain point (the order point).
C) This statement is incorrect. The safety stock is directly related to the frequency of reorder, as it is used to account for variation in demand during the lead time between orders. 
D) This statement is incorrect, as only statement B is true. 
E) This statement is incorrect, as statement B is true.

Which of the Following Is Correct