You have found the EOQ for a given item. The optimal time between replenishments (T*) is 9.3 weeks. Since you have to manage many different items, you are trying to minimize costs and coordinate your orders following the Power of Two Policy.

Taking this into account, which of the following statements is true? Select all correct answers

You should order this item every sixteen weeks.

Changing the order frequency using this policy will increase the cost by no more than 6% of the optimal Total Relevant Cost.

You should order this item every eight weeks.

You should order this item every six weeks.

You should order this item every four weeks.

None of the above.