Continuous review model and a periodic review model

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Reference no: EM13844218

Which of the following statements is INCORRECT regarding the differences between a continuous review model and a periodic review model?

A periodic review model maintains a higher level of safety stock than a continuous review model in the same setting because the periodic review model must protect against stock-outs during the review period.

A continuous review model is recommended for high-margin products.

It is easier to design a periodic review model since it only answers how much to order but not when to order.

For a periodic review model, the longer the review period, the higher the level of safety stock.

Reference no: EM13844218

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