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Sagot :
The mismatch between Ali’s calculations using the Economic Order Quantity model and the actual expense was caused by A. demand for the company’s product changed.
What is the Economic Order Quantity model?
The Economic Order Quantity model (EOQ) shows the ideal order quantity a company should purchase or produce to minimize inventory costs (holding costs, shortage costs, and ordering costs).
EOQ assumes constant demand, ordering, and holding costs over time.
The model is computed as EOQ = square root of: [2(setup costs)(demand rate)] / holding costs.
Thus, the mismatch between Ali’s calculations using the Economic Order Quantity model and the actual expense was caused by A. demand for the company’s product changed.
Learn more about the Economic Order Quantity model at https://brainly.com/question/14215453
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