Question

In a continuous review system, the inventory level for an item is constantly monitored, and when the reorder point is reached, an order is released. to simplify the discussion of continuous review systems, it is assumed that the variables that underlie the system are constant. one variable is __________, which states that the inventory item of interest has a constant demand per period.

Answer 1

One variable is demand, which states that the inventory item of interest has a constant demand per period.

Demand is the insistent request of an item. When demand changes of a good or service, it changes the companies revenue because when the item is in high demand, they often sell a lot.  On the other hand, when an item is in low demand, they do not sell very much.