QUESTION 8 Consider an optional replenishment system (also called a min-max system) for inventory control. This type of system was simulated in the lab, and is described in the textbook. For each of the following statements, indicate whether it will be TRUE or FALSE of such a system (simply type one of 'True' or 'False' beside each statement). Assume that no other parameters (such as demand) change. a) Annual ordering costs will increase if the difference between (min) and (max) is decreased. b) Changes to (Max) should have a more profound effect on whether a stockout occurs in an individual order cycle than changes to (Min) will have. c) The order quantity will be the same with every order, and will be equal to (Max-Min). d) Increasing (min) but leaving (max) the same should result in an increase in annual holding costs. QUESTION 9 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 re-designs their ordering process such that it is less costly (administration-wise) for them to place orders, then the order quantity should a. increase b. decrease OC. not be changed (stay the same)