Which of the following statements is true about the Q system?

Which of the following statements is true about the Q system? 



A. It does not have a reorder point but rather a target inventory.
B. The system is completely determined by the two parameters, Q and R.
C. It does not have an EOQ because the quantity varies according to demand.
D. The order interval is fixed—not the order quantity.
E. None of the above is true.


Answer: B. The system is completely determined by the two parameters, Q and R.


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