Which statement is most accurate when deciding how much and when to buy?
A)Balance price,volume,carrying cost,and the cost of stock-outs.
B)Use the forecast future demand,lead times,and prices to determine optimal order volume.
C)Determine the price premium to attain the desired order quantity.
D)Managers seldom make purchase decisions until they are absolutely sure of the volume required.
E)The costs of placing orders and holding inventory are so low they do not significantly affect the decision of how much to buy.

Question

Quizplus · Accepted Answer

The most accurate statement when deciding how much and when to buy is to balance price, volume, carrying cost, and the cost of stock-outs. This means considering the cost of ordering too much inventory and having it sit in storage for too long, as well as the cost of not ordering enough and potentially losing sales due to stock-outs. By balancing these factors, companies can make informed decisions about how much inventory to order and when to order it.

Which Statement Is Most Accurate When Deciding How Much and When