Question: (PLEASE FULLY READ AND ANSWER THE QUESTION) A key trade-off in determining the economic order quantity is between inventory holding cost and ordering (set up)

(PLEASE FULLY READ AND ANSWER THE QUESTION) A key trade-off in determining the economic order quantity is between inventory holding cost and ordering (set up) cost. Based on the accounting principles and industry practices, companies estimate parameters for holding cost and ordering cost. Explain why it is not absolutely critical to estimate the cost parameters accurately in implementing the economic order quantity model including the implication of this feature on the inventory management.

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