Scenario $12\mathrm{.}4$

Consider the following data for an independent$-$demand item maintained by Vicki Crittenden, the proprietor of a local auto repair shop:

Use the information in Scenario $12\mathrm{.}4.$ Due to new ordering procedures initiated by Crittenden, the ordering cost is dropping to $$4$ per order. At the same time, the weekly demand increases to $64$ units per week due to an increase in business. What effect do these changes have on the EOQ quantity for this item?

The EOQ quantity remains unchanged.

The EOQ quantity increases by $20\%.$

The EOQ quantity decreases by $20\%.$

Sufficient information is not available for answering this question.