Answer All question in True or False:

Q-6 When backorders are allowed, a customer, who leaves without being able to buy a product because of a stock-out in this cycle, is expected to return the next cycle and buy the product after replenishment.

Q-7 When the demand for the product is uncertain, and customers whose demands are unmet will not backorder, then the cost of Cu is given by p-c+g where p is the unit selling price, c is the unit cost of the product, and g is the goodwill loss.

Q-8 If there are unsold products in inventory, which could be carried forward to the next order cycle by paying the appropriate holding cost, the cost of overage is accurately calculated by cvcv, where cc is the cost of the product, and vv is the salvage value.

Q-9 In the (Q, r) model, generally, if the desired service level increases, then the required safety stock will increase.

Q-10 The optimal service level, which will result in maximum profit under uncertainty, is given by the ratio Cu/Cu+Co