Question: Consider the case where a business orders from a supplier using a continuous review (0) system, and in quantities that are consistent with the Economic

Consider the case where a business orders from a supplier using a continuous review (0) system, and in quantities that are consistent with the Economic Order Quantity (E0Q), How should the following change to a cost parameter or a condition affect their order quantity (assuming that they adjust their order quantities accordingly)? If the supplier is able to fill orders for the business quickerleshortor lead time), then the order quantity should increase b. decrease c.not be changed (stay the same) Consider the case where a business orders from a supplier using a continuous review (Q) system, and in quantities that are consistent with the Economic Order Quantity (EOQ). How should the following change to a cost parameter or a condition affect their order quantity (assuming that they adjust their order quantities accordingly)? If the company has had their bank increase the interest rate on their line of credit, thus increasing their cost of capital, then the order quantity should increase b. decrease c. not be changed (stay the same)

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