Answer the following statement(s) true (T) or false (F)
1. Opportunity costs incurred by having capital tied up in inventory are typically referred to as order costs.
2. Increasing the amount of inventory that is held decreases the risk of a stockout.
3. The EOQ model is widely viewed as being robust.
4. he optimal order quantity for the EOQ model is found where the annual ordering and carrying costs are equal.
5. In an EOQ model with variable demand, stockouts cannot occur.
1. False
2. True
3. True
4. True
5. False
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