1.

With the basic Economic Order Quantity model, the term D/Q represents

a. average inventory level

b. total annual ordering cost

c. the number of days between orders

d. the number of orders placed per year

2.

With the basic Economic Order Quantity model, the term Q/2 represents

a. average inventory level

b. total annual ordering cost

c. the number of days between orders

d. the number of orders placed per year

3.

Increasing the service level for an inventory policy will

a. increase the Economic Order Quantity

b. decrease the Economic Order Quantity

c. increase the reorder point

d. decrease the reorder point