In a periodic review inventory system, how many units are ordered?
A) Target inventory level
B) Target inventory level - on hand balance
C) Max inventory level - min inventory level
D) The EOQ
E) Average demand during review period + average demand during lead time

Question

Quizplus · Accepted Answer

In a periodic review inventory system, the order quantity is determined by the difference between the target inventory level and the current inventory on hand. This ensures that inventory levels are replenished up to a predetermined target level, accounting for current stock.

In a Periodic Review Inventory System, How Many Units Are