Describe fixed-order quantity total cost, Operation Management

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Which of the following is the set of all cost components that make up the fixed-order quantity total cost (TC) function?

Answer

a. Annual holding cost, annual ordering cost, unit cost

b. Annual holding cost, annual ordering cost, annual purchasing cost

c. Annual lead time cost, annual holding cost, annual purchasing cost

d. Annual purchasing cost, annual ordering cost, fixed cost

e. Annual unit cost, annual set up cost, annual purchasing cost

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