$34$

Multiple Choice $4\mathrm{.}8$ points

Use the following information for the next THREE questions. The demand for an item is $10,000$ units per year. The cost of placing an order for the item is $$17\mathrm{.}00$ and the inventory carrying rate is $15\%.$ The unit price of the item is $$9\mathrm{.}4.$ What is the EOQ?

Between $480$ and $485$

Less than $480$

Greater than $490$

Between $485$ and $490$

$35$

Multiple Choice $4\mathrm{.}8$ points

What is the lowest possible total annual inventory costs $($TAIC$)?$

Between $$94,500$ and $$95,000$

Between $$94,000$ and $$94,500$

Less than $$94,000$

Greater than $$95,000$

$36$

Multiple Choice $4\mathrm{.}8$ points

How will their annual ordering cost, annual inventory carrying cost, and total annual inventory cost change if the company uses an order size that is greater than the optimal order quantity?

Decrease, increase, it depends

Decrease, increase, decrease

Decrease, increase, increase

Increase, increase, increase

Increase, decrease, it depends