A type of inventory system that issues an order whenever a withdrawal is made from inventory is known as?

A type of inventory system that issues an order whenever a withdrawal is made from inventory is known as?

• A. ABC System
• B. Bin System
• C. Base Stock Level System
• D. Single Period Inventory Model

Answer: (C)

Keep a fixed base stock level and replenish to that target after every withdrawal. This is the essence of a base stock (order-up-to) policy, a continuous review approach where any withdrawal triggers an order to restore on-hand inventory back to the pre-set base stock level. It ensures inventory stays at the chosen target to meet ongoing demand. This differs from classification schemes like the ABC system, which groups items by value rather than how replenishment is triggered; from storage-focused ideas like a bin system; and from the single-period model, which is for one-time purchases with no ongoing replenishment.

Keep a fixed base stock level and replenish to that target after every withdrawal. This is the essence of a base stock (order-up-to) policy, a continuous review approach where any withdrawal triggers an order to restore on-hand inventory back to the pre-set base stock level. It ensures inventory stays at the chosen target to meet ongoing demand. This differs from classification schemes like the ABC system, which groups items by value rather than how replenishment is triggered; from storage-focused ideas like a bin system; and from the single-period model, which is for one-time purchases with no ongoing replenishment.