Due to unprecedented growth during the year,Flowers by Kelly 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:
Identify whether increasing the size of inventory orders will increase,decrease,or have no effect on each of the following items.
___a. Average inventory
___b. Cost of goods sold
___c. Number of orders per year
___d. Total annual carrying costs
___e. Total anunual carrying and ordering costs
___f. Total annual ordering costs

Question

Due to unprecedented growth during the year,Flowers by Kelly 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:
Identify whether increasing the size of inventory orders will increase,decrease,or have no effect on each of the following items.
 ___a. Average inventory
___b. Cost of goods sold
___c. Number of orders per year
___d. Total annual carrying costs
___e. Total anunual carrying and ordering costs
___f. Total annual ordering costs

Quizplus · Accepted Answer

The Answer of Due to unprecedented growth during the year,Flowers by Kelly 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:
Identify whether increasing the size of inventory orders will increase,decrease,or have no effect on each of the following items.
 ___a. Average inventory
___b. Cost of goods sold
___c. Number of orders per year
___d. Total annual carrying costs
___e. Total anunual carrying and ordering costs
___f. Total annual ordering costs

Due to Unprecedented Growth During the Year,Flowers by Kelly Decided