(a) Switching to in-house production under the EOQ model affects the optimal order quantity in the following way:

decrease, no change, increase, it depends

Explanation:

b) Increasing the variance of the demand distribution under the News vendor model affects the optimal order quantity in the following way:

decrease, no change, increase, it depends

Explanation:

c) Assuming Q and R remain unchanged, increasing the variance of the demand distribution under the (Q,R) model affects the type I service level in the following way:

decrease, no change, increase, it depends

Explanation:

d) Increasing the lead time under the order-up-to model affects the average order quantity in the long run (assume number of cycle lengths tend to infinite) in the following way:

decrease, no change, increase, it depends

Explanation: