Question $2$:True or False Questions $(1$ pomt eacin.

The order lead time is always less than the cycle length for an EOQ model.

a$.$ True

b$.$ False

The types of inventory include raw materials, components, finished items, and storage space.

a$.$ True

b$.$ False

Among the reasons that motivate holding inventory is the plan to account for demand seasonality and alleviate

disruption caused by changing workforce levels and production rate bottlenecks.

a$.$ True

b$.$ False

The EOQ model balances the purchase cost and economies of scale.

a$.$ True

b$.$ False

The optimal order quantity for the EOQ model always results in an ordering cost equal to the holding cost.

a$.$ True

b$.$ False

In the EPQ model, if the lead time doubles from $5$ to $10$ days, the EPQ will double.

a$.$ True

b$.$ False

In quantity discount models, it is possible that all EOQ values are realizable.

a$.$ True

b$.$ False

The only purpose of the discounts that suppliers provide is to encourage buyers to purchase in bulk. Therefore, we

should always increase our ordering quantity to benefit from this discount.

a$.$ True

b$.$ False

The EOQ model assumes a finite production rate.

a$.$ True

b$.$ False

In an EPQ model, we can compute the downtime directly as $\frac{H}{}.$

a$.$ True

b$.$ False

Reduce the cvstem shown in the helnw fioure to a single trancfer finction $$Marks $51$