11. An
RFID reader does not require direct line of sight to read the information
stored in an RFID tag.
12. The
EOQ, also known as the economic order quantity, is the optimal order size in
terms of cost because it minimizes the annual total inventory cost. The EOQ is
the lot size where inventory holding costs equal annual ordering costs.
13. The
total annual inventory cost is the sum of the annual purchase cost, the annual
holding cost, the annual capacity cost, and the annual ordering cost.
14. Relaxing
the instantaneous replenishment assumption of the EOQ model results in the
Economic Manufacturing Quantity model.
15. The
optimal order quantity for the quantity discount model may exist at a price
breakpoint.
16. In
the Economic Manufacturing Quantity model, the annual consumption rate must be
higher than the annual production rate.
17. When
demand and lead time are constant, reorder point is the demand during lead
time.
18. The
continuous review inventory system is more expensive to monitor compared to the
periodic review inventory system.
19. The
(s, S) continuous review inventory system orders the same quantity Q when
physical inventory reaches the reorder points.
20. The
periodic inventory review system reviews physical inventory at specific points
in time.
