Question: Question 14 Consider a continuous review inventory system. If annual ordering costs are $800 and annual holding costs (related to cycle inventory) are $700, then

Question 14 Consider a continuous review

Question 14 Consider a continuous review inventory system. If annual ordering costs are $800 and annual holding costs (related to cycle inventory) are $700, then which of the following statements is most likely to be TRUE? a. The order quantity (Q) is too high. b. The order quantity (Q) is too low. c. The reorder point (R) is too high. d. The reorder point (R) is too low

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