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TRUE / FALSE. The average inventory level is inversely related to order size

User Jerreck
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5 votes

Answer:

False.

Step-by-step explanation:

The average inventory level and order size are not always inversely related. It depends on factors like demand patterns, lead time, and replenishment policies. A larger order size can increase average inventory when demand is stable, reducing stockouts. However, in unpredictable or fluctuating demand, larger orders can lead to lower inventory levels. Thus, the relationship is context-dependent, not strictly inverse.

User Vincentp
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