In which type of review does inventory level monitor occur only at certain times?

The periodic review approach involves checking and adjusting inventory levels at set intervals rather than continuously monitoring the inventory on an ongoing basis. This type of review is characterized by scheduled evaluations where stock levels are assessed, and replenishment occurs based on predetermined timeframes, such as weekly or monthly.

One of the primary advantages of the periodic review system is that it simplifies inventory management since it allows businesses to plan and allocate resources for managing stock at regular intervals. During these review periods, the inventory level is evaluated against desired targets, and orders for replenishment are placed to bring the inventory levels back up to the target, taking into account lead times and expected demand.

In contrast, continuous review systems involve constant monitoring of inventory levels to trigger orders whenever stock falls below a certain threshold. This approach can be more resource-intensive but can lead to better management of stock-outs and overstock situations. The other options, such as fixed order quantity review and multi-period review, are often variations or extensions of these two main systems, but they do not specifically address inventory monitoring occurring strictly at designated times as the periodic review does.