The Formula for Ordering Cost Is the

question 105

Multiple Choice

The formula for ordering cost is the

• A)number of orders per year ´ cost of placing an order.
• B)number of orders per year/cost of placing an order.
• C)average number of units in inventory ´ cost of carrying one unit in inventory.
• D)average number of units in inventory/cost of carrying one unit in inventory.
• E)ordering cost + carrying cost.

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