Question: Using the EOQ model, the total inventory cost for a given lot size is calculated. You notice that the resulting annual holding cost is 10%

Using the EOQ model, the total inventory cost for a given lot size is calculated. You notice that the resulting annual holding cost is 10% higher than annual ordering cost. You can conclude that, compared to the optimal lot size (EOQ), this lot size is:

Select one: a. Greater than EOQ b. Less than EOQ c. Exactly equal to EOQ d. None of the above. Cant make a conclusion, not enough information.

Which one of the following is true about dependent-demand items?

Select one:

a. Its demand is to be forecasted.

b. It is typically the end item.

c. MRP is used to calculate its requirements.

d. Its demand is determined by market forecast.

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