1. When inventory is reviewed after a fixed period of time, and when it is known that demand or supply or both could be uncertain, the best model to determine order quantity and safety stock is the (Q, r) model.

Group of answer choices

True

False

2. Setting the service level at the critical ratio (or just above, if it's not an exact match) gives us the highest expected profit when faced with demand/supply uncertainty.

Group of answer choices

True

False

3. Suppose I want my supplier to offer a 10% discount on the purchase price. The supplier wants my order size to be between 5,000 and 10,000. I do the EOQ calculation and the EOQ turns out to be 3,000. In order to get the 10% price discount in the most profitable way, I should order 10,000 units.

Group of answer choices

True

False