Which of the Following Is True Under the Periodic Review

Multiple Choice

Which of the following is true under the Periodic Review System?

A) a lower level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
B) a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
C) it is more expensive to administer compared to the Continuous Review System
D) the only uncertainty is the magnitude of demand during the delivery lead time
E) there are no discrepancies between physical inventory and the stock record