Your Company Has Been Informed That a Major Supplier Is

Your company has been informed that a major supplier is doubling the order processing fee it charges customers from $10 to $20 per order. Meanwhile general interest rates have risen from 1% to 4% due to rapid economic growth in the economy. What else would have to occur for this data not to affect inventory planning by a company?

A) Units sold would have to double.
B) Prices would have to decrease.
C) Total costs would have to decrease.
D) The holding cost line would have to shift down.
E) The minimum cost point would increase.

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