The ordering of small,frequent orders minimizes which of the following costs?
A)stockout costs
B)ordering costs
C)carrying costs
D)production costs

Question

Quizplus · Accepted Answer

Ordering small, frequent orders minimizes carrying costs because it reduces the amount of inventory that a company must hold at any given time, thereby lowering the costs associated with storage, insurance, and potential obsolescence.

The Ordering of Small,frequent Orders Minimizes Which of the Following