S tate whether True or False:

a. C onstruction materials account for a large fraction of overall construction project cost.

b. M aterials are classified broadly into capital items and revenue items.

c. Functions involved in material management are—materials planning, procurement, custody

(receiving, warehousing and issuing), materials accounting, transportation, inventory monitoring and control, and materials codification.

d. C osts related to inventory are holding cost, stock-out cost and ordering cost.

e. C ommonly used inventory-control policies are ABC analysis, VED analysis and FSN analysis.

f. EO Q inventory model aims to provide an answer to how much to order—i.e., it fixes the tradeoff between ordering cost and carrying cost.