The effects of declining interest rates on order sizing, inventory, and investment

Order quantities increase as a result of declining interest rates, when employing order-sizing techniques, at a rate extremely disproportional to the decline for certain types of items. A significant increase in order quantities can adversely affect the financial health of a company. Computer graphics illustrate this effect. Companies most likely to experience this threat are identified, and recommendations are made to safeguard the financial health of a company.