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If Annual Demand Is 50,000 Units, the Ordering Cost Is

Question 93

Multiple Choice

If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding cost is $5 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?


A) 909
B) 707
C) 634
D) 500
E) 141

Correct Answer:

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