T/F: Inventory management is the planning and controlling of inventories in order to meet the competitive priorities of the organization.
True
T/F: When looking at inventory management, the term "lot size" refers to the physical dimensions of the area where the inventory is stored.
False
T/F: When looking at inventory management, the term "lot size" refers to the quantity of an inventory item management either buys from a supplier or manufactures using internal processes.
True
T/F: The primary reason for keeping inventories low is that inventory represents a temporary monetary investment in goods on which a firm must pay interest.
True
T/F: One component of the holding cost of inventory is interest.
True