Which One of the Following Statements About Inventory Control Systems

Multiple Choice

Which one of the following statements about inventory control systems is best?

A) A single-bin system is essentially a P system, with the target inventory and current inventory position established visually.
B) A base-stock system minimizes ordering and setup costs by placing orders more infrequently.
C) The base-stock system is mostly used for inexpensive items because it maximizes cycle inventory costs.
D) Visual systems are intended for use with high-value items, such as jet engines, that don't experience a steady demand.