What characterizes periodic review systems in inventory management?

Periodic review systems in inventory management are characterized by a regular review schedule of inventory. This means that inventory levels are assessed at predetermined intervals, regardless of the current stock level or demand fluctuations during that period. The objective of this approach is to maintain sufficient stock to meet anticipated demand while minimizing excess inventory.

By establishing a consistent review schedule, businesses can plan their purchasing and replenishment cycles effectively, taking into account lead times and order quantities. This systematic approach helps to balance inventory costs while ensuring that there is enough stock on hand during the review periods.

In contrast, other choices describe different inventory management strategies. For example, customer requests for stock involve a more reactive method that addresses immediate demand rather than a set schedule. Temperature-sensitive products and emergency stock levels relate to specific inventory considerations that may be part of an overarching strategy but do not define a periodic review system.