Question 1: Safety stock in inventory systems depends only on the average demand during the lead time.
True
False
Question 2: The EOQ model is best suited for items whose demand is dependent on other products.
True
False
Question 3: Service level is the complement of the probability of a stockout.
True
False
Question 4: In the simple EOQ model, if annual demand were to increase, the EOQ would increase proportionately.
True
False