Generally,ordering Costs Are the Single Most Important Cost Element in Inventory

question 88

True/False

Generally,ordering costs are the single most important cost element in inventory management,because they are greater in magnitude than carrying costs.

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Definitions:

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Productivity

A measure of the efficiency of production that is often quantified as the ratio of output to inputs used in the production process, such as labor and capital.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate in relation to each other.

Labor Productivity

Output per unit of labor; measured as real GDP divided by the hours of labor employed to produce that output.