4 The efficiency of an inventory system is often measured by the turnover ratio. The turnover ratio...

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4 The efficiency of an inventory system is often measured by the turnover ratio. The turnover ratio (TR) is defined by TR 

a Does a high turnover ratio indicate an efficient inventory system?

b If the EOQ model is being used, determine TR in terms of K, D, h, and q.

c Suppose D is increased. Show that TR will also be increased.

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