In the economic order quantity model based (EOQ) ordering, if the ordering cost reduces by 19% (if the old ordering cost was $100, the new ordering cost would be $81 ), the EOQ would reduce by: (answer in decimals. If you believe that EOQ will reduce by 25%, your answer should be 0.25 ) (If the old EOQ was 500 and the new EOQ is 400 , the percent reduction would be (500400)/500=20%=0.20