A company uses an item of inventory as follows Purchase price Annual demand Ordering cost Annual...

 

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A company uses an item of inventory as follows Purchase price Annual demand Ordering cost Annual holding cost $96 per unit 4,000 units $300 10% of purchase price Economic order quality 500 units Should the company order 1,000 units at a time in order to secure an 8% discount? A company uses an item of inventory as follows Purchase price Annual demand Ordering cost Annual holding cost $96 per unit 4,000 units $300 10% of purchase price Economic order quality 500 units Should the company order 1,000 units at a time in order to secure an 8% discount?

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