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Business, 19.08.2021 03:30 rodriguez1980

Suppose a firm currently places orders in batches of 1000 units every month. The ordering costs are $250/order. The supplier sells the units to the firm at the rate of $10/unit. In addition, the cost of capital is 20% per annum. Which of the following statements is true? Group of answer choices The current order quantity minimizes the sum of inventory holding and ordering costs Annual inventory holding costs are higher that annual ordering costs If the firm increases its order quantity from the current level, its ordering costs will increase Annual ordering costs are higher than annual inventory holding costs None of the above

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