The inventory holding cost is proportional to the order quantity, but the annual ordering cost is inversely proportional to the order quantity.Annual procurement costs do not depend on the order quantity.
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Q9: Economic order quantity for production is optimal
Q10: The closer the unit salvage value is
Q11: Actual demand may exceed recorded sales.
Q12: "Shrinkage" of inventory includes:
A)reduced unit value.
B)theft.
C)obsolescence.
D)misplacement.
Q13: In the calculation of economic order quantity,
Q15: The economic order quantity model assumes the
Q16: In the ABC classification system, "C" items
Q17: Which of the following is not a
Q18: Holding costs and procurement/manufacturing costs are both
Q19: In the continuous review system, order quantity
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