Amount suggested by the economic order quantity

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Reference no: EM131913414

1. Why might a company have extra inventory on hand above the amount suggested by the economic order quantity? Make a case for a redundant inventory item in a business setting.

2. What does it mean when one states that the operating and financing decisions are separate from each other? How do we view the financing decision in terms of the magnitude of effect?

Reference no: EM131913414

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