Question: (Problems 9-10) A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The

 (Problems 9-10) A manufacturer is contemplating a switch from buying to

(Problems 9-10) A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. 9. Compared to the EOQ model, the maximum inventory would be approximately: A. the same B. 70 percent higher C. 30 percent higher D. 30 percent lower E. 70 percent lower 10. Compared to the EOQ, the economic production quantity would be approximately: A. 20 percent smaller B. 20 percent larger C. 40 percent smaller D. the same E. 40 percent larger

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