1.Which of the following will always decrease total inventory costs?

		Increasing order quantity
		Increasing total units demanded
		Decreasing order quantity
		None of the above

2.Safety stock can be used to reduce risk associated with using the EOQ model.

True

False

3.The transactions motive for holding inventory revolves around the idea of being able to take advantage of unforseen circumstances.

True

False

4.The total cost of inventory is a linear relationship that is a function of the cost of ordering inventory and the cost of holding inventory.

True

False