A periodic review system ______.
A)is also known as a periodic inventory system
B)is also known as a variable order interval system
C)is one where the entire inventory is ordered once and not replenished
D)is suitable for selling high-volume products

Question

Quizplus · Accepted Answer

A periodic review system is also known as a periodic inventory system where the inventory is reviewed periodically, and orders are placed to replenish the stock. This system is commonly used for managing inventory and is suitable for selling low- to medium-volume products.  Option B is incorrect because a variable order interval system is different from a periodic review system. Option C is incorrect because a periodic review system involves regularly replenishing the inventory, so the entire inventory is not ordered once and not replenished. Option D is incorrect because a periodic review system works well for managing inventory for low- to medium-volume products, not just high-volume products.

A Periodic Review System ______