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Business, 07.11.2019 02:31 dewayne5599

Restaurant a uses 60 bags of potatoes each month. the potatoes are purchased from a supplier for a price of $80 per bag and an ordering cost of $20 per order. restaurant a’s annual inventory holding cost percentage is 40%. if restaurant a’s demand for the potatoes is decreased by 10%, what will be the change in its economic order quantity?

a. decreases from 8.7 bags to 8.2 bags

b. remains the same

c. increases from 28.5 to 30 bags

d. decreases from 30 to 28.5 bags

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