Placing large, infrequent orders minimizes
A)ordering cost.
B)carrying cost.
C)stockout cost.
D)all of the above.

Name: Placing large, infrequent orders minimizes A)ordering cost. B)carrying cost. C)stockout cost. D)all of the above.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

Placing large, infrequent orders minimizes ordering costs because each order incurs a fixed cost, regardless of the order size. By ordering less frequently but in larger quantities, a company reduces the number of times these fixed costs are incurred.

Placing Large, Infrequent Orders Minimizes