A continuous review system ______.
A)requires stringent monitoring of inventories because they have high value
B)is best suited for the C category of items under the ABC classification scheme
C)is also known as the annual inventory system
D)is one where inventory replenishment is done annually

Question

Quizplus · Accepted Answer

A continuous review system is designed to closely monitor inventory levels and reorder when they reach a certain point, making it critical to monitor and manage inventory closely. It is not specific to any particular category of items, and it is not the same as the annual inventory system, which involves physically counting all inventory once per year. Additionally, inventory replenishment in a continuous review system does not necessarily happen annually - it depends on the specific inventory levels and reorder points set for each item.

A Continuous Review System ______