Answer the following statement(s) true (T) or false (F)
1. At the optimal order quantity for the quantity discount model, the sum of the annual holding and ordering costs is minimized.
2. As lead time for an item increases, the cycle time increases.
3. An assumption in the economic production lot size model is that there is storage capacity to hold the entire production lot.
4. If lead time is longer than the review period, the order quantity at any review point is the amount needed for the inventory on hand plus all outstanding orders to reach the replenishment level.
5. For the periodic review inventory model presented in the textbook, it is assumed that a special replenishment order will be placed in the event of a stockout between review points.
1. False
2. False
3. False
4. True
5. False
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