You have calculated the economic order quantity $($EOQ$)$ for an item to be $500$ units per order. In the past, you were placing orders for $1,000$ units at a time for this particular item. Which of the following statements is true?

Multiple Choice

The old policy had lower annual ordering costs than ordering the EOQ quantity

Changes in ordering and carrying costs cannot be determined.

The old policy had lower annual inventory carrying costs than ordering the EOQ quantity

The old policy had higher annual inventory carrying costs than ordering the EOQ quantity