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When is the ordering cost decreased?
Ordering cost falls while the size of order increases. It is because when the size of order raises for the similar quantity of inventory purchased annually, in that case less orders and thus administration cost would be needed for example, staff, phone calls and paperwork etc.
Explain Porter's Five Forces Model and how Bill can use it to analyze his current business and his expansion. Be sure to address each of the 5 forces and explain to Bill what they
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