Which one of the following statements represents an advantage of the P system over the Q system?
A) Less safety stock is carried to achieve the same service level.
B) The replenishment intervals can be more easily individualized for items.
C) Orders can be more easily combined to the same supplier.
D) A P system is more suitable for quantity discounts and capacity limitations.

Question

Quizplus · Accepted Answer

The P system, or periodic review system, allows for orders to be reviewed at regular intervals, making it easier to combine orders to the same supplier. This is because orders for different items can be synchronized to be placed at the same time, potentially reducing shipping costs and simplifying order management.

Which One of the Following Statements Represents an Advantage of the P