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An inventory system answers two important questions: when to order and how much to order. Which of the following statements correctly explains how a Q
An inventory system answers two important questions: when to order and how much to order. Which of the following statements correctly explains how a Q system continuous review system or a P system periodic review system answers these questions?
Question Select one:
A
Under a P system, a fixed quantity Q is ordered when the inventory position reaches the reorder point R
B
Under a Q system, a fixed quantity is ordered every P time period.
C
Under a Q system, an order is placed to replenish the inventory position up to the target level T when the inventory position reaches the reorder point R
D
Under a P system, an order is placed to replenish the inventory position up to the target level T every P time periods.
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