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Alpha Company Places 10 Orders Per Year with Its Supplier

Question 2

Multiple Choice

Alpha Company places 10 orders per year with its supplier.Each order is for an amount exactly equal to the EOQ.Alpha has determined its annual inventory carrying cost is $2,000.Alpha carries no safety stock at all.What is Alpha's order cost per order?


A) Cannot be determined without further information
B) $2,000
C) $200
D) $1,500

Correct Answer:

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