Question: A company currently uses the EOQ method to order a product. Under this method, the product is ordered in quantities of 300 units per month.

A company currently uses the EOQ method to order a product. Under this method, the product is ordered in quantities of 300 units per month. If the company changes to a strategy of ordering in quantities of 70 units per week, by how much will the average cycle stock decrease/increase?

A. Average cycle stock will decrease by 115 units

B. Average cycle stock will decrease by 230 units

C. Average cycle stock will increase by 70 units

D. Average cycle stock will increase by 50 units

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