When using a continuous review policy,a manager has to account for the uncertainty of demand during the lead time and the review interval.

Question

Quizplus · Accepted Answer

In a continuous review policy, inventory levels are monitored continuously, and orders are placed whenever inventory levels hit a predetermined reorder point. The uncertainty of demand is accounted for during the lead time, but there is no review interval in continuous review systems since monitoring and ordering are ongoing processes.

When Using a Continuous Review Policy,a Manager Has to Account