When ordering a single product,it is optimal for the buyer to order the minimum of the available capacity and the optimal order quantity.When ordering multiple products,
A)the buyer should treat each product as a unique purchase and optimize each on an individual basis.
B)the buyer must consider trade-offs between ordering more of one product than another.
C)the buyer should average the cost,procurement,and holding parameters and create a basket product that consists of equal ratios of all items.
D)the buyer should construct a weighted average based on all individual item demands and optimize this quantity.

Question

Quizplus · Accepted Answer

When ordering multiple products, the buyer must consider trade-offs between ordering more of one product than another, as this approach allows for a more nuanced understanding of inventory management and cost optimization across different items.

When Ordering a Single Product,it Is Optimal for the Buyer