State whether the following statements are True or False. 1. In transshipment pr

ID: 3149626 • Letter: S

Question

State whether the following statements are True or False.

1. In transshipment problem, the number of units shipped into a transshipment point should be equal to the number of units shipped out.

2. The linear programming model of the product mix problem only includes constraints of the less than or equal form.

3. The purpose of the Economic Order Quantity (EOQ) model is to achieve a balance between the cost of holding inventory and the cost of stock outs.

4. The two fundamental decisions that you have to make when controlling inventory are: (1) how much to order, and (2) how much money to spend.

5. If in an inventory management problem lead time is 3 days and daily demand is 25 per day then re-order point is 50.

1.) True

2.) False

The linear programming model of the product mix problem includes all the 3 constraints.

3.) False

The purpose of the Economic Order Quantity (EOQ) model is to minimize the cost of holding inventory and the cost of stock outs.

4.) True

5.) False

Re-order point = Daily demand × lead time = 3 × 25 = 75

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.