Question

A periodic review system is __________. a. a term used to indicate the amount of demand b. to be met under conditions of demand and supply uncertainty business conditions that force companies to hold inventory c. an inventory system that is used to manage independent demand inventory d. extra inventory that a company holds to protect itself against uncertainties in either demand or replenishment time

Answer 1

Answer:

The correct answer is letter "C": an inventory system that is used to manage independent demand inventory.

Explanation:

A Periodic Review System is used to keep track of the inventory of a firm after determined periods. Review intervals are set by the company in an attempt to find out the amount of stock needed to fulfill consumers' orders or to reach the company's Target Inventory (TI). This inventory system is used to handle independent demand inventory.