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Question 3: $300 Everything else being equal and in the absence of a safety stock,...

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Finance

Question 3: $300

Everything else being equal and in the absence of a safety stock, when orders are placed for quantities greater than those indicated using the Economic Ordering Quantity model, these costs will be the greater of the two major inventory costs.

Question 4: $400

This cost is calculated as the sum of a firms total carrying and ordering costs.

Question 5: Show-Off Round: $1,000

The length of time needed to deliver an order, The size of the items safety stock, The number of units used during the delivery period:

a) What are the factors that affect an items order point?

b) What are the factors that affect an items Economic Ordering Quantity?

c) What are the factors that directly affect an items total inventory costs?

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