Question: A bicycle store uses a continuous review system to manage its inventory of bicycles. Using the EOQ model the store manager currently makes orders in

A bicycle store uses a continuous review system to manage its inventory of bicycles. Using the EOQ model the store manager currently makes orders in the optimal order quantity, which is 340 bicycles. If the Annual Demand for bicycles increases, all else being constant, which of the following will be true?

a. The Optimal Order Quantity will Decrease

b. The Optimal Order Quantity Will Increase

c. The Optimal Order Quantity will not change

d. The Store Manager Should Hire an Inventory Consultant

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