Reference no: EM132893381

Question 1: What will the increase in inventory carrying costs cause?

Option 1: Increase in the safety stock required.

Option 2: Have no effect on the economic order quantity.

Option 3: Decrease in the number of orders issued per year.

Option 4: Decrease in the economic order quantity.

Question 2: What is the purpose of the economic order quantity model?

Option 1: Minimize the sum of the order costs and the holding costs.

Option 2: Minimize the inventory quantities.

Option 3: Minimize the safety stock

Option 4: Minimize the sum of the demand costs and the backlog costs.