Question: Explain what should happen to the order quantity in an order point (Q,R) system, and the time between orders in a periodic review (P,T) system,

Explain what should happen to the order quantity in an order point (Q,R) system, and the time between orders in a periodic review (P,T) system, as the fixed cost per order (S) decreases relative to other cost parameters. Explain the effect this will have on average inventory levels.

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