Question 1
A disadvantage of the fixed-period inventory system is that
◦ since there is no count of inventory during the review period, a stockout is possible.
◦ orders usually are for larger quantities.
◦ it involves higher ordering costs than the fixed quantity inventory system.
◦ the average inventory level is decreased.
◦ additional inventory records are required.
Question 2
The difference between P and Q inventory systems is
◦ order spacing and order size.
◦ maximum service level.
◦ downsizing.
◦ average service level.
◦ upsizing.