1. In quantity discount models:

Select one:

a. the ordering quantity will always be the same like the economic order quantity.

b. There will be an increase in the total holding cost due to ordering in large quantity.

c. The total cost of inventory will decrease.

d. None of the above

2. A firm manages its inventory using the following replenishment policy: "When the inventory level drops to 15 units, 100 units will be ordered." Which of the following statements is TRUE?

Select one:

a. 100 is the reorder point, and 15 is the order quantity.

b. The demand during lead time is 100.

c. 15 is the reorder point, and 100 is the order quantity.

d. 15 is the safety stock, and 100 is the reorder point.

e. None of the above.

3. In periodic inventory management systems, records are updated at the end of the review period

Select one:

a. TRUE

b. FALSE