Which of the following statements is not true?
A) A two-bin system allows a firm to not have to keep perpetual inventory records.
B) Using perpetual inventory records results in different order quantities than using a two-bin system.
C) In a two-bin system, units in the second bin are not used until the first bin is empty.
D) In a two-bin system, the size of the second bin should equal the demand during replenishment lead time.
E) Perpetual inventory records are appropriate when using the EPQ model.

Question

Quizplus · Accepted Answer

The statement that using perpetual inventory records results in different order quantities than using a two-bin system is not necessarily true. Both systems aim to manage inventory efficiently, but they do so in different ways. The order quantities can be similar if the systems are set up to meet the same demand levels and reorder points. The key difference lies in how inventory levels are monitored and managed, not necessarily in the order quantities.

Which of the Following Statements Is Not True