What is effects of a change in the replenishment quantity

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Assignment:

What is the effect (increase, decrease, no effect) of a change in the replenishment quantity (the order quantity) on annual ordering cost, annual holding cost, and annual purchasing cost? For example, if we increase the replenishment quantity does the annual ordering cost go up, go down or stay the same. (Assume that annual purchasing costs do not include transport expenses).

Reference no: EM133237311

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