Which one of the following statements about inventory control systems is true?

Question

Quizplus · Accepted Answer

An optional replenishment system, also known as a continuous review system, is particularly attractive when both review and ordering costs are significant. This is because it allows for inventory to be replenished automatically when it reaches a certain level, reducing the need for frequent reviews and orders. A two-bin inventory system is not a P system but rather a type of visual control system, where a second bin triggers replenishment when the first bin is empty. While visual systems may require more record-keeping, they are generally simple to administer. Overstocking is less common with a base-stock system, which aims to maintain a predetermined level of inventory.

Which One of the Following Statements About Inventory Control Systems