Which Statement Is Most Accurate When Thinking About Deciding How

question 3

Multiple Choice

Which statement is most accurate when thinking about deciding how much to buy::

• A) managers seldom make purchase decisions until they are absolutely sure of the volume required.
• B) balancing price, volume, carrying cost, and the cost of stockouts is key to successfully determining how much to buy at any point in time.
• C) forecasts of future demand, lead times, and prices are usually fairly accurate.
• D) the costs of placing orders and holding inventory are so low they do not significantly affect the decision of how much to buy
• E) the price premium to attain the desired quantity is usually less than the costs of not having materials available when needed.

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Definitions:

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