354 PART 2 MANAGING CUSTOMER DEMAND

354 PART 2 MANAGING CUSTOMER DEMAND3. From the graph, what can you conclude about the relationship between the lowest total cost and the costs of orderingand holding inventory?4. How much does the total cost increase if the store managerorders twice as many bird feeders as the EOQ? How muchdoes the total cost increase if the store manager orders halfas many bird feeders as the EOQ?5. What happens to the EOQ and the total cost when demand isdoubled? What happens to the EOQ and the total cost whenunit price is doubled?6. Scroll through the lower order cost values and describe thechanges to the graph. What happens to the EOQ?7. Comment on the sensitivity of the EOQ model to errors indemand or cost estimates.