Which of the following is used in determining the order quantity in the periodic review system?
A) reorder point
B) critical ratio
C) target inventory level
D) EOQ
E) EPQ

Question

Quizplus · Accepted Answer

In the periodic review system, the order quantity is determined by calculating the difference between the target inventory level and the current inventory level at the time of review. Therefore, the target inventory level is used in determining the order quantity in this system. Reorder point is used to determine when to place an order, critical ratio is used in the continuous review system, and EOQ and EPQ are used in determining the optimal order quantity in different inventory systems.

Which of the Following Is Used in Determining the Order