[amp_mcq option1=”Order Interval is fixed” option2=”Order Interval varies” option3=”Order Quantity is fixed” option4=”Both A and C” correct=”option4″]
The correct answer is: D. Both A and C
In a continuous review inventory system, the order interval is fixed and the order quantity is also fixed. This means that the company orders a fixed amount of inventory at regular intervals, regardless of the current inventory level. This type of system is often used for items that have a high demand and a low cost.
Here is a brief explanation of each option:
- Option A: Order Interval is fixed. This is true for a continuous review inventory system. The company orders a fixed amount of inventory at regular intervals.
- Option B: Order Interval varies. This is not true for a continuous review inventory system. The company orders a fixed amount of inventory at regular intervals.
- Option C: Order Quantity is fixed. This is true for a continuous review inventory system. The company orders a fixed amount of inventory at regular intervals.
I hope this helps! Let me know if you have any other questions.