Question: OfceMax is considering using the Internet to order printers from Hewlett-Packard. The change is expected to make the cost of placing orders drop to almost

OfﬁceMax is considering using the Internet to order printers from Hewlett-Packard. The change is expected to make the cost of placing orders drop to almost nothing, although the lead time will remain the same. What effect will this have on the order quantity? On the holding and ordering costs for the year? Explain, using any formulas and examples you ﬁnd helpful.

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