If the order quantity is 1,000 units, and the holding costs are $5 a unit per year, then ______.
a. the average inventory level will be 500
b. the total annual holding cost would be $5,000
c. the average inventory level will be 2,500
d. the total annual holding cost would be $500
a. the average inventory level will be 500
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Indicate whether the statement is true or false
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