Solution-Which would cause average inventory holdings to

Which would cause average inventory holdings to decrease

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Problem 1: Which of the following would cause average inventory holdings to decrease, other things constant?

a. Fixed order costs double

b. The purchase price of inventory items decreases by 50%

c. The carrying cost of an item decreases (as a percent of purchase price)

d. The sales forecast is revised downward by 10 percent

e. None of the above (all would cause average inventory to increase)

Reference no: EM132796693

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Which would cause average inventory holdings to decrease

Reference no: EM132796693

Reference no: EM132796693

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