The equation Xi = Ai1 F1 + Ai2 F2 + Ai3 F3 + ... + Aim Fm + ViUi , represents the common factors expressed as linear combinations of the observed variables

The closer the in-season and after season sales price are, the lower the order placed at the start of the season

Indicate whether the statement is true or false

For a certain group of items, the cost of carrying inventory and the cost of placing orders is not

exactly known but is about the same for all the items. The company has calculated K = 20 for these items. If one item has an annual demand ( A) = $10,000 the NEW order quantity should be: A) $10,000. B) $2,000. C) $50,000. D) $20,000. E) none of the above