Question: Consider the EOQ Model. Consider two retailers who are identical in all ways except that the annual demand for the second retailer is 4 times
Consider the EOQ Model. Consider two retailers who are identical in all ways except that the annual demand for the second retailer is 4 times the annual demand of the first retailer. Which of the following statements about the logistics and holding costs per unit at the two retailers is correct?
| The second retailer's logistics and inventory costs per unit are 4 times that of the first retailer. | ||
| The second retailer's logistics and inventory costs per unit are 2 times that of the first retailer. | ||
| The second retailer's logistics and inventory costs per unit are (1/4)th that of the first retailer. | ||
| The second retailer's logistics and inventory costs per unit are half of that of the first retailer. |
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