All other factors equal,a decrease in the order quantity will
A)decrease the annual carrying costs.
B)decrease the annual ordering costs.
C)increase the lead time.
D)reduce the safety stock.

Question

Quizplus · Accepted Answer

When the order quantity decreases, the inventory holding cost will decrease, which in turn will reduce the annual carrying costs. The other options are not necessarily related to a decrease in the order quantity.

All Other Factors Equal,a Decrease in the Order Quantity Will