Which one of the following statements is best?
A) AP system lends itself more to quantity discounts than does a Q system.
B) In a periodic review system, the value of Q is kept the same from one cycle to another.
C) AP system requires more administrative control and computer support than does a Q system.
D) AP system requires more safety stock than a Q system.

Question

Quizplus · Accepted Answer

An AP (Periodic Review) system typically requires more safety stock than a Q (Continuous Review) system because it has a fixed review period, leading to potentially longer times between orders and thus a need for more safety stock to cover variability in demand during that period.

Which One of the Following Statements Is Best