Which of the following statements concerning differences between continuous review (Q systems) and periodic review (P systems) inventory systems is FALSE?
A) P systems require a perpetual inventory count, while Q systems require a periodic inventory counting system.
B) In periodic review systems, orders are placed after an elapsed period, P, has passed, for a variable quantity of units.
C) In continuous review systems, orders are placed for a fixed quantity of goods after a variable length of time has passed.
D) Higher than normal demand during the order cycle leads to a shorter time between orders for Q systems, while in P systems it leads to larger order sizes.
Correct Answer:
Verified
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