Asked by DANTE ANDERSON on May 20, 2024

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Periodic review policies for inventory replenishment require safety inventory to cover demand during

A) lead time only.
B) the review interval only.
C) both lead time and the review interval.
D) neither lead time or the review interval.

Periodic Review Policies

Inventory management approaches where stock levels are reviewed and possibly adjusted at regular intervals, regardless of demand patterns.

Review Interval

The scheduled time period between assessments or evaluations of a system, process, or set of data to ensure accuracy and efficiency.

  • Discern and exemplify the differences between continuous and periodic review frameworks for replenishing stock.
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Verified Answer

DP
Danielle PattersonMay 27, 2024
Final Answer :
C
Explanation :
Periodic review policies consider both lead time and the review interval when determining safety inventory levels. This is because during the review interval, there may be multiple periods of demand that occur, and safety inventory is needed to cover the demand during the entire interval, including lead time.