Costs tend to be significantly higher than holding costs
Course:- Operation Management
Reference No.:- EM131124447

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True or False?

(A) MRP system is designed for dealing with independent demand, because independent demand pattern tends to be predicatble, but lumpy.

(B) The use of small lot sizes in lean operations is in conflict with the EOQ approach since setup costs tend to be significantly higher than holding costs.

(C) The quantity sent to a bottleneck operation could be split into two or more process batches to better utilize a bottleneck resource rather than process the entire batch.

(D) When we say that SPT priority rule guarantees the minimum average flow time, we assume that job setup time is independent of processing sequence of jobs.

(E) If we have to process multiple jobs with different processing times on a single resource, we can reduce the makespan by selecting the optimal sequencing rule.

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