Which of the following statements is incorrect in relation to a periodic inventory system?
A) Smaller safety stock for more critical items is sometimes required for the fixed-interval system.
B) Vendors bundles many small, low-cost items into a single order and delivery to save costs.
C) Items are generally of low value therefore larger safety stocks will not pose a significant cost.
D) If the items are non-critical, even if there is a stock-out, it is not a cause for concern.

Question

Quizplus · Accepted Answer

In a periodic inventory system, larger safety stocks are typically required to cover the longer intervals between inventory counts, not smaller ones.

Which of the Following Statements Is Incorrect in Relation to a Periodic