The difference between P and Q inventory systems is
A) downsizing.
B) order spacing and order size.
C) maximum service level.
D) upsizing.
E) average service level.

Question

Quizplus · Accepted Answer

The main difference between P and Q inventory systems is in the way orders are placed. In a P system, orders are placed at fixed intervals (like once a week), whereas in a Q system, orders are placed when the inventory level reaches a certain point (like when it falls to a certain quantity). The order size may also vary in both systems. Therefore, the correct answer is B, which refers to order spacing and order size.

The Difference Between P and Q Inventory Systems Is