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Answer is not complete. If the order quantity doubles but the flow rate remains constant, what happens to the average amount of time a unit spends in inventory? °Decreases by more than 50% Decreases by 50% ORemains unchanged O Increases by 100% or doubles °Increases by more than 50%

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Answer #1

Answer: Option A

Explanation: In this case, the ordering and holding costs remain constant, however, the frequency of orders will fall by 50%. In such a scenario, the average amount of time spent by a unit in inventory will decrease by more than 50%.

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