Question: Here are two statements regarding inventory management. 1) The EOQ increases as the holding cost decreases. 2) The ROP increases as the service level increases.

Here are two statements regarding inventory management.

1) The EOQ increases as the holding cost decreases.

2) The ROP increases as the service level increases.

Group of answer choices

Statement 1 is TRUE, statement 2 is FALSE

Statement 1 is FALSE, statement 2 is TRUE

Statement 1 is FALSE, statement 2 is FALSE

Statement 1 is TRUE, statement 2 is TRUE

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