Breakdown at the bargaining table over critical item

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1. Demand for an item averages 1500 units per year. It costs $100 to place an order for this item, and to hold one unit of this item in inventory for a year costs $10.02. If the Economic Order Quantity is used, what will total annual ordering and holding cost be?

2. Which method of crisis management would you use during a breakdown at the bargaining table over a critical item? Why?

Reference no: EM132076199

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