Question: QUESTION 11 Consider the case where a business orders from a supplier using a continuous review (Q) system, and in quantities that are consistent with

QUESTION 11 Consider the case where a business

QUESTION 11 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 negotiates a much better interest rate on their line of credit with the bank, thus reducing the cost to hold inventory, then the order quantity should a. increase b. decrease OC. not be changed (stay the same) QUESTION 12 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 variability in demand increases (i.e., demand becomes less stable, meaning the standard deviation of demand increases), butaverage demand remains consistent, then the order quantity should O a. increase b. decrease OC. not be changed (stay the same)

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