As the ratio of the cost of overstocking to the cost of understocking gets smaller, the optimal level of product availability decreases. Is the statement TRUE or FALSE? O TRUE FALSE

Practical Management Science
6th Edition
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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6.
As the ratio of the cost of overstocking to the cost of understocking gets smaller, the optimal level of product
availability decreases.
Is the statement TRUE or FALSE?
O TRUE
FALSE
Transcribed Image Text:6. As the ratio of the cost of overstocking to the cost of understocking gets smaller, the optimal level of product availability decreases. Is the statement TRUE or FALSE? O TRUE FALSE
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