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Supply Chain Management

Category - Inventory

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A store manager at D&N clothing line continuously tracks the inventory of Jeans. They order 700 Jeans when the inventory drops below 300. In this case, the size of the order does not change from one order to the next. The tine between orders may fluctuate given variable demand. This example is of a replenishment policy known as ____________.

Continuous Review
Non-continuous Review
Subjective Review
Imperative Review

Explanation

Answer: A - In continuous review, inventory is continuously tracked and an order for a lot size is placed when the inventory declines to the reorder point, or ROP.

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Supply Chain Management

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Supply Chain Management

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