In the economic order quantity model based (EOQ) ordering, if the ordering cost reduces by 19% (if the old ordering cost was $100, the new ordering cost would be $81), the EOQ would reduce by: (answer in decimals. If you believe that EOQ will reduce by 25%, your answer should be 0.25) (If the old EOQ was 500 and the new EOQ is 400, the percent reduction would be (500 - 400)/500 = 20% = 0.20