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In: Operations Management

Which of the following generates pressure to increase inventories? A) inventory holding costs B) ordering costs...

Which of the following generates pressure to increase inventories?

A) inventory holding costs

B) ordering costs

C) storage and handling costs

D) taxes and insurance

Solutions

Expert Solution

Ans: B) ordering costs

Ordering costs are the expenses incurred to create and process an order to a supplier. These costs are included in the determination of the economic orderquantity for an inventory item.

keosha answered 2 years ago
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