Which of these statements about the production order quantity model is false? The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is non-instantaneous. Average inventory is more than half of the production order quantity. Since receipt is non-instantaneous, some units are used immediately and not stored in inventory. All else being equal, the smaller the ratio of the demand rate to the production rate, the smaller the production order quantity. None of these statements is false.
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The false statement among the ones provided is: "Average inventory is more than half of the production order quantity." In the production order quantity (POQ) model, which adapts the Economic Order Quantity (EOQ) model to situations where inventory replenishment doesn't happen all at once, the average inventory is typically less than half of the production order quantity. This is because as inventory is being produced, it is also being used up, so not all of it is kept in storage at any one time.