For an Item Under Continuous Review, the On- Hand Inventory

Multiple Choice

For an item under continuous review, the on- hand inventory is only 20 units and the reorder point R is 100 units. There are no backorders, but there is one open order for 90 units. Which one of the following statements is TRUE?

A) An order should be placed now for 20 units.
B) An order should be placed now for 10 units.
C) The current inventory position is 100 units.
D) There is no need to order at the present time.