Inventory allows flexibility in production rates.

If we carry less inventory, total annual order costs will tend to go up.

We are worried about running out of stock all the time.

As the safety stock goes up (with all other factors staying the same), the total annual holding costs will go up as well.

Shortage costs need to be considered when making the reorder point decision, when all the EOQ assumptions are met.

Raw materials are a type of inventory for which EOQ should be used to make decisions.

What does a prolonged Valsalva maneuver produce?

  Briefly explain the idea of a race condition.  

Expiration during rest and light exercise is a passive process.

Which term is used to describe detailed statements of what must be done to comply with policy?