A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the maximum inventory would be:

Question $9$ options:

a$)$ greater than the EOQ.

b$)$ equal to the EOQ.

c$)$ smaller than the EOQ.

d$)$ greater than or equal to the EOQ.

e$)$ smaller than or equal to the EOQ.