a$)$

b$)$

c$)$

d$)$

e$)$

f$)$

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Q$1.$ Write T $($True$)$ or False $($F$).(8$ x $1\mathrm{.}5$ pts$)$

If setup costs are reduced by substantial reductions in setup time, the production

order quantity is also reduced.

The larger the number of periods in the simple moving average forecasting

method, the greater the method's responsiveness to changes in demand.

The level scheduling strategy allows lower inventories than the pure chase

strategy.

$........$ The lot$-$for$-$lot lot$-$sizing technique is particularly appropriate when demand is

not very smooth and set up cost is small compared to holding cost.

A na$$ve forecast for September sales of a product would be equal to the forecast

for August.

In trend projection, the trend component is the slope of the regression equation.

A dependent demand item is so called because its demand is dependent on

customer preferences.

$........$ ABC analysis classifies inventoried items into three groups, usually based on

annual units or quantities used.