A just-in-time inventory system reduces the cost of ordering additional inventory by a factor of 100. What

Question:

A just-in-time inventory system reduces the cost of ordering additional inventory by a factor of 100. What is the change in the optimal order size predicted by the economic order quantity model?

Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...