A10. Which of the following statements on the basic EOQ model is CORRECT? A. If demand rate doubles, optimal order quantity will also double. B. Centralizing inventory via pooling will decrease cycle inventory. C. One should decrease order size when fixed ordering (set up) cost is higher than holding cost. D. Even small deviations from optimal order quantity will result in significant cost increases. A11. In the basic EOQ model, if lead time increases from 5 to 10 days, optimal amount to order: A. Doubles B. Increases, but not double C. Decreases by a factor of two D. Remains the same E. None of the above A12. If daily demand for an inventory item is 200 units per day and the lead time is 3 days, the reorder point should be: A. 100 units B. 200 units C. 300 units D. 600 units E. 700 units