Complete Question:
An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be
Answer:
TRUE
Step-by-step explanation:
The reason is that the inventory system includes the management of the inventory which includes the decision making related to:
How much to purchase?
What to purchase?
When to Purchase?
When to deliver raw materials and receive the finished goods from the production house?
It also involves the control system designed to control the flow of the inventory and policies in place to maintain and manage the inventory.
So the statement is true.