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TRUE or FALSE
1. The main objective of inventory control is to prevent stockouts.2. The Economic Order Quantity helps one estimate the optimal number of units to purchase with each order.3. The purpose of the EOQ model is to achieve a balance between the cost of holding inventory and the cost of stockouts.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. One of the assumptions of the basic EOQ model is that the receipt of inventory is instantaneous.6. Purchase price is not a factor in determining the Economic Order Quantity.7. The benefit to a Quantity Discount is a price savings that outweighs an increase in Ordering Cost.8. The reorder point indicates the number of days to wait before placing an order.9. In a Quantity Discount model, the purchase cost or material cost must be included in the total cost calculation.10. Safety stock is ignored when computing the reorder point.
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