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You make signs and need to buy LED lighting for your signs. You expect to use 2 5 0 , 0 0 0 strands of
You make signs and need to buy LED lighting for your signs. You expect to use strands of LED lights this year based on past usage. When you place a purchase order, administrative costs to manage that order are $ LED light strands cost $ each and your inventory holding rate is Lead time is days and there are daysyear
Economic order quantity is $
ROP is $
Annual Purchase cost is $
Annual Holding cost is $
Annual order cost is $
Total Annual inventory cost $
What would happen to the TAIC if your LED supplier now imposes a minimum order quantity of Round Answers to the nearest whole number.
Inventory holding costs will increasedecrease to $
Order costs will increase decrease to $
So TAIC will increasedecrease by $
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