Business, 21.12.2019 01:31 jen1164

Fite’s footballs currently operates four stock points in north texas. these stock points are identical in every respect including annual demand. a sporting goods consultant recently suggested the fite football company should increase the number of stock points to nine to improve customer service. the increase in stock points is not anticipated to change total annual demand for the company. the nine stock points would be identical in every respect including annual demand (di). you have been asked by the vp of operations to determine how this will affect total annual ordering and holding costs for items held in inventory. total annual ordering and holding costs today are $1,000,000. what do you anticipate the total annual ordering and holding costs will be under the proposal with 9 stock point locations? a. $1,000,000 b. $1,500,000 c. $2,000,000 d. $4,000,000 e. $9,000,000

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