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Ordering Cost

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True/False

Generally, ordering costs are the single most important cost elements in inventory management, because they are greater in magnitude than the carrying costs?

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True/False

Generally, ordering costs are the single most important cost elements in inventory management, because they are the greater in magnitude than carrying costs?

Answer: False

The costs associated with inventory management may be broken down as follows:

Stock-out costs-the costs that a company incurs when it runs out of inventory to sell (which can result in loss sales) or ...

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