A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would...

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A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the maximum inventory would be: Select one: a. approximately 70 percent higher b. approximately 30 percent higher C. the same d. approximately 50 percent lower e. approximately 70 percent lower A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the maximum inventory would be: Select one: a. approximately 70 percent higher b. approximately 30 percent higher C. the same d. approximately 50 percent lower e. approximately 70 percent lower

Answer rating: 100% (QA)

Answer C The Same To calculate maximum inventory levels use the following fo... View the full answer