Periodic review inventory control means replenishment orders are placed at what times?

Periodic review inventory control means replenishment orders are placed at what times?

• A. When inventory falls below a fixed level
• B. Immediately when stock runs out
• C. At fixed intervals regardless of level
• D. Only when supplier indicates

Answer: (C)

Periodic review means you check and place replenishment orders at fixed, regular intervals. At each review, you assess current stock and order enough to bring the inventory up to a predetermined target level, regardless of how much stock you have at that moment. This differs from continuous review, where an order is triggered as soon as stock falls to a reorder point. So the timing of orders is set by the schedule, not by the stock level.

Periodic review means you check and place replenishment orders at fixed, regular intervals. At each review, you assess current stock and order enough to bring the inventory up to a predetermined target level, regardless of how much stock you have at that moment. This differs from continuous review, where an order is triggered as soon as stock falls to a reorder point. So the timing of orders is set by the schedule, not by the stock level.