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Consider an optional replenishment system (also called a min-max or (s,S) system) for inventory control. This type of system was simulated in the lab, and is described in the textbook. For each of the following statements, indicate whether it will be TRUE or FALSE of such a system. (Simply type one of 'True' or 'False' beside each statement).
a) Annual ordering costs will decrease if the difference between s (min) and S (max) is decreased. Blank 1
b) Changes to s (min) has a more profound effect on stockouts than changes to S (Max). Blank 2
c) The order quantity will be the same with every order, and will be equal to S-s (which could be expressed as Max-Min). Blank 3
d) Changes to either s (min) or S (Max) will effect total holding costs. Blank 4
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