REVISION FOR FINAL

Inventory management refers only to the storage of goods in a warehouse

• TRUE

• FALSE

Just-in-Time (JIT) inventory management reduces storage and insurance costs.

• FALSE

• TRUE

Economic Order Quantity (EOQ) is used to determine how much inventory should be ordered  

at one time

• FALSE

• TRUE

If a company follows the JIT approach, it keeps a large amount of inventory in stock to

prevent shortages

• TRUE

• FALSE

A lower Days Sales of Inventory (DSI) generally means a company is able to sell its inventory

faster

• FALSE

• TRUE

Order batching can contribute to the bullwhip effect by causing irregular demand patterns

• TRUE

• FALSE

Order batching can contribute to the bullwhip effect by causing irregular demand patterns

• TRUE

• FALSE

A company using EOQ will place more frequent orders if its holding costs are very high

• TRUE

• FALSE

If a retailer consistently overestimates customer demand, it can help reduce the bullwhip effect

• TRUE

• FALSE

A company should use the same inventory management strategy for all products, regardless

of demand patterns

• TRUE

• FALSE