The cost of ordering is expressed as "Ordering Costs = A/Q x K" where K is:
A) carrying costs of the order
B) lead time required to place the order
C) difference between the number of orders and the quantity of each order
D) cost of placing an order

Question

Quizplus · Accepted Answer

The cost of ordering is expressed as "Ordering Costs = A/Q x K" where K is the cost of placing an order, which is usually fixed and independent of the order quantity. Therefore, the best choice is D - cost of placing an order.

The Cost of Ordering Is Expressed as "Ordering Costs =