Which One of the Following Statements Concerning a Continuous Review

Multiple Choice

Which one of the following statements concerning a continuous review system is best?

A) The inventory position (IP) of an item measures the item's ability to satisfy future demand, relying only on the on-hand inventory.
B) An item's inventory position under a continuous review system increases by Q units as soon as an order is received.
C) An item's on-hand inventory increases by Q units as soon as an order is placed.
D) Under a continuous review system, an item's inventory position corresponds to the on-hand inventory unless there are backorders or one or more scheduled receipts.