For many items in inventory, yearly on holding expenses amount to just a couple of percent of the unit expense.

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TrueFalse

Inventory models under problems of dependent demand are fairly various from those under problems of independent demand.

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TrueFalse

In the EOQ design, the reorder point is determined by the demand also in the time of the lead time.

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TrueFalse

One feature of inventory is to take advantage of quantity discounts.

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TrueFalse

Reducing cycle time reduces work-in-procedure inventory.

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TrueFalse

ABC analysis is based on the Pareto principle.

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TrueFalse

The maximum inventory level in the production order amount model is always less than the order amount.

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TrueFalse

As the organization level rises, the amount of buffer stock drops.

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TrueFalse

A company that places orders smaller than the EOQ amount will incur a greater annual holding price as an outcome.

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TrueFalse

Two items have actually the same average weekly demand also, but item A"s demand has actually high variability while item B"s demand also variability is low. If both A and B have actually identical lead times and also company levels, the reorder allude for A will be higher than that for B.

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TrueFalse

If a company"s estimates of ordering and holding prices are off slightly, their EOQ calculations will certainly be grossly inprecise.

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TrueFalse
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