Dry Creek Company decreased the size of inventory order quantities that had previously been determined using the EOQ model. What is the impact on the total amount of annual carrying and ordering costs?

Select one:

a. no change

b. decrease

c. increase

d. cannot be determined

JIT purchasing is done using

Select one:

a. short-term contracts emphasizing price.

b. long-term contracts based on quality, reliability, and price.

c. short-term contracts based on quality, reliability, and price.

d. inventory to hedge against stockouts and price increases.

Answer rating: 100% (QA)

1EOQ model determines the quantity of the order that should be placed at once which wil... View the full answer