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If the Order Quantity Is 1,000 Units,and the Holding Costs

Question 89

Multiple Choice

If the order quantity is 1,000 units,and the holding costs are $5 a unit per year,then ______.


A) the average inventory level will be 500
B) the total annual holding cost would be $5,000
C) the average inventory level will be 2,500
D) the total annual holding cost would be $500

Correct Answer:

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