A balanced transportation model is a transportation model where Total Supply > Total Demand. *

False

True

Setup cost is the cost associated with the placement of an order (dollars per order); it involves costs of staff posted for ordering of goods, expenses incurred on transportation of purchased orders, inspection cost of material, & cost of stationary, typing, postage, telephone charges etc. *

False

True

A goal programming problem had two goals. Goal number 1: to achieve exactly $225 profit; Goal number 2: to avoid overtime. Management prioritizes goals. The objective function for this goal programming problem is written as: Minimize G = 2(d1-) + P1(d1+) + P2(d2+) *

False

True

Classical EOQ Model has three assumptions; constant rate demand, instantaneous order replenishment, & no shortage. *

False

True

Placing a new order whenever the inventory level drops to a specific re-order point is known as continuous review. *

True

False