Question: 3. What would likely happen most immediately to an EOQ recommendation if bank lending rates (cost of capital) rise? a. The EOQ decrease b. The

3. What would likely happen most immediately to an EOQ recommendation if bank lending rates (cost of capital) rise?

a. The EOQ decrease

b. The EOQ increase

c. The EOQ IS pretty robust and should not be affected

5. Which of the following costs is most likely NOT a holding (carrying) cost (a holding cost would vary directly as a function of the amount of inventory in stock)?

a. Cost for regular inspection of warehouse inventory(Hourly wages)

b. Depreciation on the capital investment on warehouse equipment (Such as conveyor belts, robots, airconditioning plants)

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