1. For the production lot size model to be appropriate, the relationship between D, annual demand, and P, maximum annual production rate, must be:
Select one:
a. D>P
b. D=P
c. no relationship exists
d. D
2. Which of the following is not a main category of cost in inventory models?
Select one:
a. Holding/carrying.
b. Production/procurement.
c. Customer satisfaction.
d. Quality/inspection.