Which of the following statements about the basic EOQ model is NOT TRUE?

	If the carrying cost were to increase, the EOQ would fall.
	If annual demand were to double, the number of orders per year would increase.
	If the ordering cost were to double, the EOQ would rise.
	If the ordering cost were to double, the EOQ would either rise or fall.
	If annual demand were to double, the EOQ would increase.

A product has a demand of 2000 units per year. Ordering cost is $20, and holding cost is $2 per unit per year. The cost-minimizing solution for this product is to order:

	every 100 days
	10 times per year
	all 2000 units per year
	200 units per order
	100 units per order

Which of the following is NOT an assumption of the economic order quantity (EOQ) model?

	Lead time is known and constant.
	Quantity discounts are not possible.
	Production and use can occur simultaneously.
	Demand is known, constant, and independent.
	The only variable costs are setup cost and holding (or carrying) cost.

Which of the following statements is TRUE based on the following statement: "When the inventory level goes down to 10 shoes, 90 shoes will be ordered."

	10 is the reorder point, and 90 is the order quantity.
	90 is the reorder point, and 10 is the order quantity.
	The number 90 is a function of demand during lead time
	10 is the safety stock, and 90 is the reorder point.
	None of the options are true