Due to Unprecedented Growth During the Year Denise's Flowers Decided

question 133

Essay

Due to unprecedented growth during the year Denise's Flowers decided to use some of its surplus cash to increase the size of several inventory order quantities that had been previously determined using an EOQ model.
Required:
For each of the following items tell whether the action caused an increase, a decrease, or no change to the EOQ.
a. average inventory
b. cost of goods sold
c. number of orders per year
d. total annual carrying costs
e. total annual carrying and ordering costs
f. total annual ordering costs