Of the following, which trade-off affects economic order quantity (EOQ)? O Discount rate and weighted average...
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Of the following, which trade-off affects economic order quantity (EOQ)? O Discount rate and weighted average cost of capital O Ordering costs and order quantity O Ordering costs and holding costs O Inventory costs and inventory storage space Question 39 5 pts The shelf-life for an item is 10 days. The annual demand for the item is 2000 Ibs/year. The economic order quantity for the item is 50 lbs/order. Assume 365 days/year Of the following, which action should the company take? O The company should increase the order quantity to be approximately 70 Ibs/order. The company should leave the order quantity at the EOQ. O The company should decrease the order quantity to be approximately 30 Ibs/order. O The company should ask for a quantity discount because it is buying 2000 lbs a year. Of the following, which trade-off affects economic order quantity (EOQ)? O Discount rate and weighted average cost of capital O Ordering costs and order quantity O Ordering costs and holding costs O Inventory costs and inventory storage space Question 39 5 pts The shelf-life for an item is 10 days. The annual demand for the item is 2000 Ibs/year. The economic order quantity for the item is 50 lbs/order. Assume 365 days/year Of the following, which action should the company take? O The company should increase the order quantity to be approximately 70 Ibs/order. The company should leave the order quantity at the EOQ. O The company should decrease the order quantity to be approximately 30 Ibs/order. O The company should ask for a quantity discount because it is buying 2000 lbs a year.
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Order ing costs and order quantity The trade off that affects economic order quantity is ordering co... View the full answer
Related Book For
Principles of Managerial Finance
ISBN: 978-0133507690
14th edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
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