b. Since the lot size is 1,000 filters, the company would order 6,000 filters each time. The

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Since the lot size is 1,000 filters, the company would order 6,000 filters each time. The lower the carrying cost, the more important ordering costs become relatively, and the larger the optimal order size.

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Financial Management And Policy

ISBN: 9780130326577

12th Edition

Authors: James C. Van Horne

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Question Posted: Oct 21, 2024 07:02 AM

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b. Since the lot size is 1,000 filters, the company would order 6,000 filters each time. The lower the carrying cost, the more important ordering costs become relatively, and the larger the optimal...
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3. a. Carrying costs = $.I0 x 1,000 = $100. The optimal order size would be 4,000 filters, which represents five orders a month.
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b. Since the lot size is 1,000 filters, the company would order 6,000 filters each time. The

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Financial Management And Policy

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