Question 9 True/False (Part b-l)

b)When lost sales are allowed, the aim of minimizing cost is the same as maximizing revenue.

Group of answer choices

True

False

c)A finite replenishment rate leads to larger batches than the EOQ.

Group of answer choices

True

False

d)Stock consists of all the goods and materials that are stored by an organization.

Group of answer choices

True

False

e)Operational decisions are considered to the most important decisions.

Group of answer choices

True

False

f)The basic reason of holding stock is to reduce costs between supply and demand.

Group of answer choices

True

False

g)An item is a distinct product that is kept in stock: it is one entry in the inventory. It is the same as stock keeping unit (SKU).

Group of answer choices

True

False

h)EOQ model is easy to solve (or tractable) at the expense of its validity.

Group of answer choices

True

False

i)All other things being equal, adding a shortage cost reduces the best order quantity.

Group of answer choices

True

False

j)Without using stocks, the organization have to install enough capacity to match average sales.

Group of answer choices

True

False

k)Moving away from EOQ always decreases variable costs.

Group of answer choices

True

False

l)A supply chain consists of the series of activities and organizations that materials move through on their journey from initial suppliers to final customers.

Group of answer choices

True

False