A retailer upgrades its warehousing facility, resulting in a decrease in inventory carrying cost from 40% to 25% of the cost of the items stored. What effect does this have on the following performance parameters for their EOQ model? Select the correct answer: decreases, remains the same, or increases. No calculations or explanations are necessary. (4 points each)

• A - Economic order quantity

1. Decreases
2. Remains the same
3. Increases

• B - Ordering frequency

1. Decreases
2. Remains the same
3. Increases

• C - Average monthly ordering cost

1. Decreases
2. Remains the same
3. Increases