This value was verified to be negative for all values
of k. In other words, the incentive and information
cost decreases with a2. Because the inventory level
also decreases with a2, the information and
incentive cost is an increasing function of
inventory level for all levels of k. When k $ 1;
i.e. there is high controllability, the optimal
inventory level decreases to level I2 which is strictly
less than the optimal level I1 obtained in the basic
EOQ (inventory) model. In the case of partial
controllability characterized by a value of k
between 0 and 1, the optimal inventory level I3 will