Multiple Choice
If the order quantity per order is 2,000 units,annual demand is 10,000,and cost per order is $50,then which of the following statements is true?
A) There are 50 orders in the year.
B) The total annual ordering cost is $250.
C) The holding cost per unit is $2.50.
D) The total annual holding costs are $25,000 (= $2.50 * 10,000) .
Correct Answer:
Verified
Correct Answer:
Verified
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