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Business, 25.12.2020 19:20 mel2001love

A restaurant Soup4u uses 60 bags of tomatoes each month. The tomatoes are purchased from a supplier for a price of $80 per bag and an ordering cost of $20 per order. Soup4u's annual inventory holding cost percentage is 40%. Soup4u always uses economic order quantity for deciding how many tomato bags it should order. Which of the following will reduce their inventory to 1/3 of its current value without increasing their cost? a) Reduction in ordering cost to 1/9 of it current value
b) Increasing holding cost to 9 times its current value
c) Reduction in ordering cost to 1/3 of it current value
d) Increasing holding cost to 3 times its current value

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