Carrying cost is a function of order size; the larger the order quantity, the higher the inventory carrying cost.

Name: Carrying cost is a function of order size; the larger the order quantity, the higher the inventory carrying cost.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Carrying cost increases with larger order quantities because it includes expenses such as storage, insurance, taxes, and opportunity costs, which all tend to rise as more inventory is held.

Carrying Cost Is a Function of Order Size; the Larger