Skip to contentSkip to search

Periodic inventory review

Periodic review checks the inventory position at fixed intervals and decides replenishment then, often ordering enough to reach a target level. It differs from continuously monitoring a reorder point. Protection may need to cover demand during the review interval as well as replenishment lead time. The system can coordinate orders but may require more buffer or create shortages if demand changes between reviews. Apply the system specified rather than mixing its timing with a continuous-review formula.

Worked example

Stock is reviewed every Monday and replenished towards a target covering the next review period and delivery lead time.

Common mistake

Periodic review is an ordering policy, not automatically the same as the accounting periodic inventory-valuation system.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA MA Supporting September 2026–June 2027
FIA FMA Supporting September 2026–June 2027