In the EOQ Model,if Quantity Discounts Are Offered,buying a Larger

question 87

Multiple Choice

In the EOQ model,if quantity discounts are offered,buying a larger quantity just because of the lower per-unit purchase price ______.

• A)might not result in the minimum total annual cost because the holding costs are likely to increase
• B)will result in the minimum total annual cost
• C)might not result in the minimum total annual cost because the ordering costs are likely to increase
• D)will result in the highest total annual cost