A Firm Is Currently Purchasing an Item for Inventory Using

Multiple Choice

A firm is currently purchasing an item for inventory using the basic EOQ model. They plan on making the product themselves and will be using the EOQ model based on noninstantaneous receipt of inventory. If everything else stays the same, what changes should the firm expect?

A) EOQ decreases.
B) Average inventory level decreases.
C) Reorder point increases.
D) Safety stock increases.