Q$1.$ Write T $($True$)$ or False $($F$).(81\mathrm{.}5$ pts$)$

a$)$

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

order quantity is also reduced.

b$)$

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

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

c$)$

The level scheduling strategy allows lower inventories than the pure chase

strategy.

d$)$

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.

e$)$

A naine forecast for September sales of a product would be equal to the forecast

for August.

f$)$

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

g$)$

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

customer preferences.

h$)$

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

annual units or quantities used.