1. In the basic EOQ model, as the order quantity decreases, the annual _______ cost decreases.

2. In the basic EOQ model, as the order quantity increases, the annual __________ cost will decrease.

3. In the basic EOQ model, as the order quantity decreases, the number of orders per year will ________

4. With cycle counting, "A" items will be counted more frequently than "B" items - True or False

5. Annual physical inventories usually do not require shutdown of production facility - True or False

6. The production of tangible goods is harder to automate than the production of services - True or False

7. A marketing manager is commonly involved in the process of identifying customers' wants and needs - True or False