Question

If you were to "manage" Wilson's EOQ as a means of reducing your company inventories, which variable of Wilson's EOQ would make the most sense to change.

1.Unit Price.
2.Ordering Cost.
3.Inventory Carrying Cost.
4.Annual Demand.

Answer 1

The correct answer is : 2. Ordering Cost.

Step-by-step explanation:

Ordering cost is any cost that has to do with the purchase of inventory from one of your company suppliers. It involves finding suppliers, negotiating prices, preparing a purchase order that can be done online or on paper. Besides the inspection time when you receive the product or items and finally the account payable departments enter into this process by processing the paycheck. It refers to anything that takes somebody's time