A method of inventory control called the Periodic Review System involves checking stock levels on a regular basis and placing orders to replenish until the desired level is reached. Continuous review systems, on the other hand, keep a close eye on inventory and place orders when levels drop below a predetermined threshold. Periodic systems are simpler to set up, but because of the possibility of stockouts in between review periods, they may result in higher safety stock levels. Periodic reviews, however, can work well for less volatile inventory items or in settings with steady demand when combined with demand forecasting and appropriate buffer calculations.
