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Inventory and modeling statements: select the correct set Evaluate each statement about inventory and modeling approaches: A. A–B–C analysis is based on Pareto's principle. B. Simulation can be used for inventory control. C. The basic EOQ formula ignores demand variability. Choose the correct option.

Difficulty: Easy

Only A is correct
A and B are correct
B and C are correct
All of the above

Correct Answer: All of the above

Explanation:

Verification
• A: ABC classifies items by annual usage value (Pareto/80–20). ✔• B: Simulation models stochastic demand/lead time for policy testing. ✔• C: Classical EOQ assumes constant demand/lead time; it ignores variability. ✔

Final Answer
All of the above

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