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Author Question: When quantity discounts are allowed, the cost-minimizing order quantity (Read 40 times)

asmith134

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Question 1

Which category of inventory holding costs is much higher than average for rapid-change industries such as PCs and cell phones?
◦ material handling costs
◦ parts cost
◦ housing costs
◦ labour cost
◦ pilferage, scrap, and obsolescence

Question 2

When quantity discounts are allowed, the cost-minimizing order quantity
◦ minimizes the sum of holding, ordering, and product costs.
◦ may be a quantity below that at which one qualifies for that price.
◦ minimizes the sum of holding and ordering costs.
◦ minimizes the unit purchase price.
◦ is always an EOQ quantity.


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Marked as best answer by asmith134 on Dec 3, 2019

sarajane1989

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asmith134

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Reply 2 on: Dec 3, 2019
Thanks for the timely response, appreciate it


Animal_Goddess

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Reply 3 on: Yesterday
:D TYSM

 

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