1. Dependent demand happens when the need for any one item is a direct result of the need for some other item. While Independent demand is characterized when the demands for various items are unrelated to each other. ( True/ false)

2. Shortage costs happens When the stock of an item is depleted, an order for that item must either wait until the stock is replenished or be cancelled. Stock out happens when the demand is not met, and the order is cancelled. ( True/ false)

3. Lean production Integrated activities designed to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods. Its main goal is to reduce waste in all aspects of the organization. ( True/ false)

4. In inventory management, an ABC inventory classification system that divides inventory into size or volume categories that map into strategies appropriate for the category. Could result in reducing the storage capacity of the warehouse. ( True/ false)