An increase in the inventory holding costs would ________________ the economic order quantities.

not affect



would cancel

10 points


Assume that your company follows a continues review system and you are told to use this ‘exact system’ and convert it into a periodic review inventory management system. Which one of the following would you have to determine for the new system?

Safety inventory, quantity to order (EOQ), and the reorder point for the new system

safety inventory, time between the orders, and the target for the new system

All of the above must be determined before you start a new system

None of the above.

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