Define a total system inventory. Multiple choice question. It is the period of time when an unknown amount of inventory is on hand. It is the sum of the inventory held across all of the locations in a company. It specifies the amount of risk of incurring a stockout that a firm is willing to incur. It is a fixed time period that passes between inventory reviews.

Answer

It is the sum of the inventory held across all of the locations in a company.

Q: What is a total system inventory? A: It is the sum of the inventory held across all of the locations in a company.
Q: What is a periodic review system? A: A fixed time period that passes between inventory reviews.
Q: What is a safety stock? A: It specifies the amount of risk of incurring a stockout that a firm is willing to incur.
Q: What is an unknown amount of inventory on hand? A: It is the period of time when an unknown amount of inventory is on hand.