Question: 5 . Because computer technologies become obsolete so quickly, a well - known computer manufacturer is thinking about raising holding costs from 3 0 %

5. Because computer technologies become obsolete so quickly, a well-known computer
manufacturer is thinking about raising holding costs from 30% of item cost
122 CHAPTER 5 INVENTORY MANAGEMENT
to some higher percentage. What will be the impact on the economic order quantity
for monitors? You mnst explain your answer using any formulas or examples
you think are helpful.

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