1. Why does total system inventory increase as a company increases its number of stocking locations?
2. Early in the chapter it was stated that planning inventory levels is both an art and a science. Explain in your own words why this is true.
3. A firm is presently using the basic EOQ model and is considering switching to the production order quantity model (i.e., receiving gradual deliveries over time). If all the cost and demand parameters stay the same, what changes should the firm expect?