Which one of the following is the most important for a continuous review system?
A) Constant lead time.
B) Fixed order quantity.
C) POS scanning.
D) Normal demand distribution.

Question

Quizplus · Accepted Answer

POS (point of sale) scanning is the most important for a continuous review system as it allows for real-time tracking of inventory levels and triggers automatic replenishment when stock levels fall below a certain point, ensuring that inventory is always available to meet customer demand. Constant lead time, fixed order quantity, and normal demand distribution are also important factors in inventory management, but they do not contribute as directly to the effectiveness of a continuous review system as POS scanning.

Which One of the Following Is the Most Important for a Continuous