An inventory system answers two important questions: When to order and how much to order. Which of the following statements correctly explains how a Q system $($continuous review system$)$ or a P system $($periodic review system$)$ answers these questions?

Group of answer choices

Under a P system, a fixed quantity of Q is ordered every P time periods.

Under a Q system, a fixed quantity Q is ordered when the inventory position reaches the reorder point R$.$

Under a Q system, an order is placed to replenish the inventory position up to the target level T every P time periods.

Under a P system, a fixed quantity of T is ordered every P time periods.

$$

Flag question: Question $2$

Question $22$ pts

Which one of the following reasons creates a condition to INCREASE inventories?

Group of answer choices

To relax $($i$.$e$.,$ lower$)$ the customer service level

Low setup costs

Need for reduction in total payments $($in dollars$)$ to suppliers

Low storage costs

$$

Flag question: Question $3$

Question $32$ pts

Which one of the following statements about a CONTINUOUS review system is most accurate?

Group of answer choices

The number of periods $($P$)$ between orders changes according to the demand actually experienced from week to week.

The smaller the order size for an item, the higher the inventory position would be as a result.

The calculation of the reorder point $($R$)$ typically assumes that demand and lead time are known with certainty.

The lot size Q changes from one order to the next.

$$

Flag question: Question $4$

Question $42$ pts

A manager of a large medical supply house that operates $50$ weeks per year and $6$ days per week, has decided to implement a periodic review system for all class C items. One such item has the following characteristics:

Demand $=24,000$ units $/$ year

Order cost $=$ $$51/$ order

Holding cost $=$ $$6/$ unit $/$ year

If the manager wishes to minimize total cost $($thereby approximating the EOQ$),$ what should be P$,$ the number of workdays between orders? Round your answer to the nearest whole number. $$

$$

Flag question: Question $5$

Question $52$ pts

A hospital is currently using a continuous review system to control its inventory. One of the items in inventory is an elastic band. The average demand for this item is $151$ boxes per week, and the standard deviation in weekly demand is $24$ boxes. If the lead time is $2$ weeks and the hospital wants a $99$ percent cycle$-$service level, what is the reorder point for this item? Round your answer to the nearest whole number. $$