Periodic review policies for inventory replenishment require safety inventory to cover demand during
A)lead time only.
B)the review interval only.
C)both lead time and the review interval.
D)neither lead time or the review interval.

Question

Quizplus · Accepted Answer

Periodic review policies consider both lead time and the review interval when determining safety inventory levels. This is because during the review interval, there may be multiple periods of demand that occur, and safety inventory is needed to cover the demand during the entire interval, including lead time.

Periodic Review Policies for Inventory Replenishment Require Safety Inventory to Cover