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The purchasing agent for a company that assembles and sells air-conditioning equipment in a Latin American country has noted that the cost of compressors has increased signi?cantly each time they have reordered. The company uses an Economic Order Quantity (EOQ) model to determine order size. What are the implications of this price escalation with respect to order size? What factors other than price must be taken into consideration?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9444068

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