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State the Perpetual inventory control systems
Continuous (Perpetual) Inventory Control Systems:
Stock levels are continually monitored and reviewed within ‘real-time’ and orders placed while stock reaches or falls below a pre-found reorder level. This reorder level could be for standard or variable quantity every time but ordering does not arise at predetermined intervals of time.
A production process is known to produce a particular item in such a way that 5% of these are defective. If two items are randomly selected as they come off the production line, wh
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