In the production order quantity (POQ) model, inventory does not arrive in a single moment but flows in at a steady rate, resulting in a larger lot size than in an otherwise identical EOQ problem.

Question 9 options:

	1) True
	2) False

Question 10 (2 points)

In the quantity discount model, it is possible to have a cost-minimizing solution where annual ordering costs do not equal annual carrying costs.

Question 10 options:

	1) True
	2) False

Question 11 (2 points)

In ABC analysis, "A" Items are the most tightly controlled.

Question 11 options:

	1) True
	2) False

Question 12 (2 points)

Which category of inventory holding costs is much higher than average for rapid-change industries such as PCs and cell phones?

Question 12 options:

1)	housing costs

2)	material handling costs

3)	labor cost

4)	pilferage, scrap, and obsolescence