We buy wine at a fixed rate from supplier vineyards and store the bottles for years to make them vintage wines, which we then sell to discerning customers. Unlike conventional industrial products such as electronics where product selling prices drop with length of storage (obsolesence), selling prices of wines increase with the vintage year - that is, wines stored longer will sell for more. What effect could such selling price increases associated with longer inventory periods of storage have on the EOQ? EOQ=Sqrootof[(2DS)/H] D= annual demand in units S= cost of placing 1 order; H= cost of holding 1 unit of that item in inventory for 1 year (\% of cost of item as procured from supplier) Nothing will happen to the EOQ - it remains generally unchanged. EOQ will decrease EOQ will increase