A company places purchase orders to buy two weeks%u2019 supply at a time. Oscar Chen has just joined as the Director of Finance and has passed an order which says that one month %u 2019s supply should be purchased at a time. Which of the following is correct assuming all other variables remain unchanged?
Answer

The annual cost of carrying inventories will increase.

The annual cost of carrying inventories will decrease.

The annual cost of carrying inventories will not change.

Annual ordering cost will increase

None of the above

Answer rating: 100% (QA)

The annual cost of carrying ... View the full answer