DyEnergy Corporation has correctly computed its economic order quantity at 5,000 units. However, the management feels it would rather order in quantities of 4,000 units in order to reduce inventory holding risks. How should ' the firm's total annual purchase order cost and total annual carrying cost for an order quantity of 4,000 units compare to the respective amounts for an order quantity of

5,000 units?
a. Lower purchase order cost and higher carrying cost
b. Lower purchase order cost and lower carrying cost
c. Higher purchase order cost and lower carrying cost
d. Higher purchase order cost and higher carrying cost


c

Business

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Fill in the blank(s) with the appropriate word(s).

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Answer the following statement true (T) or false (F)

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