Which category of inventory holding costs would be much higher than average for rapidly changing industries such as pesonal computers and cell phones?

5. Which category of inventory holding costs would be much higher than average for rapidly changing industries such as pesonal computers and cell phones?

a Obsolescence

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b. Warehouse Leasing

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c. Labor handling

 

6. High stock-out costs relative to holding costs should lead to recommendations for larger orders

a. Yes b. No

 

7. I dhe oruantity (ize) doubles, what happensto the mumber of onders placed per year? (hint: # of orders)T-Demand EOQ)

a. Declines by more than 50%

b, Declines by 50%

c. Increases by 50%

d. Does not change .

 

8. Instead of following the EOQ prescription of 150 pieces/order, a company orders 200 pieces at a time. This action would typically result in:

a. Higher total ordering cost, but lower total holding cost

b. Lower total ordering cost, but higher total holding cost

c. Lower total ordering cost and lower total holding cost

d. Higher total ordering cost and higher total holding cost

 

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