We know that, theoretically, ordering the EOQ drives lower costs. However, what happens when we introduce modifications to the assumptions of the EOQ model? Think about the following situations and select all the statements that are true.

Select all correct answers

A decrease of the holding cost will increase the order size.

When a supplier offers an all$-$units discount, his buyers' cycle stock tends to raise because they increase the size of each order.

A decrease of the transaction cost will increase the order size.

A one$-$time$-$buy discount will always increase the order size.

If there is any lead time, the pipeline inventory will be a function of the order size.

None of the above

is the number of books sold in the Harvard book shops in Cambridge on a certain day.

is a constant term.

is a binary variable $(1$ if it is an academic holiday in Cambridge, $0$ if it is not an academic holiday$).$

is a continuous variable, represents the temperature in Cambridge in degrees Celsius.

Which of the following statements is$/$are true?

Select all correct answers

In Anna's model, "Holidays" is a dummy variable.

Anna considers that nice weather $($higher temperatures$)$ will result in a decrease of book sales.

In Anna's model, $"$a$"$ is the trend.

Anna considers that she will sell more books during holidays.

In Anna's model, the variable "Temperature" is the intercept.

None of the above