Answer the following statement(s) true (T) or false (F)
1. 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.
2. 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.
3. For the production lot size, Q, the average inventory is one-half the maximum inventory, or 1/2Q.
4. In a periodic review model, inventory is checked and reordering is done only at specified points in time, such as on a weekly, biweekly, monthly, or some other periodic basis.
1. True
2. False
3. True
4. True
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