Perpetual inventory systems are required for any EOQ model having _____ demand while periodic inventory systems are used for EOQ models having _____ demand.
A) variable; variable
B) variable; constant
C) constant; constant
D) constant; variable

Question

Quizplus · Accepted Answer

Periodic inventory systems are used for EOQ models having constant demand because the demand is not known with certainty and the inventory is reviewed at regular intervals. Perpetual inventory systems are used for EOQ models having variable demand because the demand is known with certainty and the inventory is continuously updated.

Perpetual Inventory Systems Are Required for Any EOQ Model Having