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A grocery store uses 600 boxes of plastic bags per month. The boxes cost $25 each, placing an order for plastic bags costs $20, and
A grocery store uses 600 boxes of plastic bags per month. The boxes cost $25 each, placing an order for plastic bags costs $20, and holding costs are $5 per box per month.
Assume the store orders boxes in smaller quantities than the economic order quantity. This will ______ holding costs and ______ ordering costs.
a) decrease;increase
b) decrease;decrease
c) increase;decrease
d) increase;increase
e) none of above
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