A manager using continuous review has to account only for
A)demand variability.
B)lead time variability.
C)demand during lead time.
D)cycle service level.

Question

Quizplus · Accepted Answer

With continuous review, the inventory level is constantly monitored and orders are placed to replenish inventory when it reaches a predetermined level. The manager has to account for demand during lead time, which is the time it takes to receive the order once it has been placed. Lead time variability and demand variability can also impact inventory levels, but the primary focus is on managing inventory to meet demand during lead time. Cycle service level is not directly related to continuous review.

A Manager Using Continuous Review Has to Account Only for