1. Assuming order cost per order is constant increasing the EOO will have what effect on total ordering costs?

2. If order size is decreased and frequency of orders increased, what will happen to total inventory costs?

3. Assuming constant, linear usage, an decrease of 500 units in the order quantity will cause what quantity change in average inventory?

4. If demand increases by 10% and the value of each unit increases by 10 what will happen to the EOQ? (Assume that everything else remains the same).

5. Given the following information, determine EOQ.

Price per unit $50

Order cost $10

Carrying cost 9%

Annual demand 120,000 units

5. Given the following information, determine ICC. (The EOQ quantity has been round to a whole number)

Price per unit $100

Order cost per order $25

Carrying cost 12%

Annual demand 8,000 units

EOQ 183 units