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The Formula for Ordering Cost Is the

Question 97

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.

Correct Answer:

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