A periodic inventory system
A) uses fixed order sizes at variable time intervals
B) normally requires a larger safety stock
C) cannot be used if demand is variable
D) is used to periodically manage inventory

Question

Quizplus · Accepted Answer

A periodic inventory system typically requires a larger safety stock because inventory levels are only reviewed at specific intervals, leading to less frequent adjustments and a need to buffer against variability in demand and supply.

A Periodic Inventory System