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    Applied Management Science
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    Exam 8: Inventory Models
  5. Question
    The Inventory Holding Cost Is Proportional to the Order Quantity
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The Inventory Holding Cost Is Proportional to the Order Quantity

Question 47

Question 47

True/False

The inventory holding cost is proportional to the order quantity, but the annual ordering cost is inversely proportional to the order quantity.Annual procurement costs do not depend on the order quantity.

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