Impact on his holding costs and ordering costs


Problem:

Daniel Trumpe has computed the EOQ for a product he sells to be 500 units. However, Daniel figures he has plenty of cash to spend. Therefore, he wants to order 600 units each time he places an order.

Required:

Question: What will be the impact on his holding costs and ordering costs?

Note: Provide thorough explanation of the given question.

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Finance Basics: Impact on his holding costs and ordering costs
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