Which of the following statements is not true?
a) A two-bin system allows a firm to not have to keep perpetual inventory records.
b) Using perpetual inventory records results in different order quantities than using a two-bin system.
c) In a two-bin system, units in the second bin are not used until the first bin is empty.
d) In a two-bin system, the size of the second bin should equal the demand during replenishment lead time.
e) Perpetual inventory records are appropriate when using the EPQ model.
Answer: B