Question

Periodic review systems require smaller safety stock levels than corresponding continuous review systems. Group of answer choices False True

Answer 1

The statement is: True.

Step-by-step explanation:

The periodic review system is a method to keep track of the inventory of a company by reviewing the ledger after specific intervals. On the other hand, the continuous review system requires to take a look at the inventory stock every time part of it leaves or gets into the firm. The periodic review system is more practical because it does not imply having the information of the stock at all times.