Which of the Following Statements Is Not True

question 31

Multiple Choice

Which of the following statements is not true?

• A) A two-bin system allows a firm to not have to keep perpetual inventory records.
• B) Using perpetual inventory records results in different order quantities than using a two-bin system.
• C) In a two-bin system, units in the second bin are not used until the first bin is empty.
• D) In a two-bin system, the size of the second bin should equal the demand during replenishment lead time.
• E) Perpetual inventory records are appropriate when using the EPQ model.

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Definitions:

Delivery Date

The specific day on which a product or service is promised to be delivered to the customer.

Predictable Demand

A situation where future customer demand for a product or service can be forecasted with a relatively high degree of accuracy based on historical data and trends.

Unpredictable Demand

Demand characterized by high variability and challenging to forecast accurately, often influenced by external factors and trends.

Low Cost Countries

Countries with lower labor and production costs, making them attractive locations for manufacturing and sourcing components.