QUESTION 10

1. If the order quantity increases and nothing else changes, what will happen to the total annual ordering cost?

   		Increases
   		Decreases
   		Stays the same
   		Unable to determine

QUESTION 11

1. If the monthly demand decreases and nothing else changes, what will happen to the total ordering cost?

   		Increases
   		Decreases
   		Stays the same
   		Unable to determine

QUESTION 12

1. If the monthly demand decreases and nothing else changes, what will happen to the total holding cost?

   		Increases
   		Decreases
   		Stays the same
   		Unable to determine

QUESTION 13

1. A company must calculate annual inventory costs and the optimal order quantity for a particular product. The company has determined the following parameter values.

   Monthly demand = 300 units

   Holding cost = $2.50 per unit per year

   Ordering cost = $30 per order

   Order quantity = 450 units

   What is the optimal order quantity (EOQ or Q*)? Round your answer to the nearest whole number.

QUESTION 14

1. A company must calculate annual inventory costs and the optimal order quantity for a particular product. The company has determined the following parameter values.

   Monthly demand = 300 units

   Holding cost = $2.50 per unit per year

   Ordering cost = $30 per order

   Order quantity = 450 units

   For the optimal order quantity, what is the total annual holding cost? Round your answer to two decimal places.