Consider total cost to consist of purchasing costs

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Reference no: EM131438237

Dexter Inc. is concerned that this new policy might hurt its own profit margins on the Left Handed Monkey Wrench. They will undertake an analysis to help them better understand the cost impacts. For the purpose of this analysis, they will consider total cost to consist of purchasing costs, ordering costs, and inventory holding costs. Assume that there are no pipeline inventory costs since Dexter Inc. takes ownership upon receipt of the shipment. Based on your analysis, which of the following statements are true? You are allowed to select more than one of the statments. a. The expected annual purchasing costs will increase with the new policy of having to order in cases b. The expected annual ordering costs will increase with the new policy of having to order in cases c. The expected annual inventory holding costs will increase with the new policy of having to order in cases d. The expected annual total cost (purchase, order, holding) will increase with the new policy of having to order in cases e. None of these statements are true

 

Reference no: EM131438237

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