Daniel Trumpe has computed the EOQ for a product he sells to be 400 units; however, due to recent events he has a cash flow problem. Therefore, he orders only 100 units each time he places an order. Which of the following is true for this situation?
a) Total ordering cost will be higher than total holding cost.
b) Total ordering cost will be lower than total holding cost.
c) Total ordering cost will equal total holding cost.
d) Nothing can be determined without more information.
e) None of the above.