The order quantity in a periodic review system rises as the on-hand inventory level falls.

Name: The order quantity in a periodic review system rises as the on-hand inventory level falls.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a periodic review system, the order quantity is typically based on the on-hand inventory level at the time of review. If the on-hand inventory level falls, it would trigger a larger order quantity to be placed during the review, resulting in the statement being true.

The Order Quantity in a Periodic Review System Rises as the On-Hand