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A company determines its order quantity for a raw material using the EOQ model.
What would be the effects on the EOQ and on the total annual stockholding cost of a decrease in the cost of
placing an order for the raw material?
       EOQ                                Total annual
                                           stockholding cost
A   Increase                              No effect
B   Decrease                            No effect
C   Increase                              Increase
D   Decrease                            Decrease

D

d

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D

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D

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[em218]

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d

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B

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D

TOP

TOP

see

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