In a continuous inventory system an order is placed for a variable amount whenev
ID: 433620 • Letter: I
Question
In a continuous inventory system an order is placed
for a variable amount whenever the inventory on hand decreases to less than the lead time demand
for a variable amount after the passage of a fixed amount of time
for the same fixed amount whenever the inventory on hand decreases to a certain level
for the same constant amount after the passage of a fixed amount of time
In the ABC inventory classification system
C items require the most control
B items require more control than C items but less control than A items
B items require the most control
A items require less control than B items
In the periodic, or fixed-time-period system
the time between orders is constant and the order size varies
the time between orders varies and the order size is constant
both the time between orders and the order size vary
both the time between orders and the order size are constant
Lot sizing
determines the quantities in which items are usually made or purchased
involves physically counting at least some inventory items daily and reconciling differences
subtracts on-hand quantities and scheduled receipts from gross requirements
subtracts an item's lead time from its due date to determine order date
When production or purchasing is made in predetermined batches or lots
planned order receipts are always equal to net requirements
planned order receipts are always smaller than net requirements
planned order receipts can be different from net requirements
planned order receipts occur after net requirements
for a variable amount whenever the inventory on hand decreases to less than the lead time demand
for a variable amount after the passage of a fixed amount of time
Explanation / Answer
We are required to do only 4 parts of a question
1. The correct option is c. for the same fixed amount whenever the inventory on hand decreases to a certain level because in a continuous system, an order is placed for the same fixed amount whenever the inventory on hand decreases to a certain level,
2. The correct option is b. B items require more control than C items but less control than A items because A is most valuable and C is least valuable.
3. The correct option is a. the time between orders is constant and the order size varies because in periodic inventory system, an order is placed for a variable amount after specific regular intervals.
4. The correct option is a. determines the quantities in which items are usually made or purchased.
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