Which of the following statements about quantity discounts is false?
A) The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs.
B) In inventory management, item cost becomes relevant to inventory decisions only when a quantity discount is available.
C) If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule.
D) The larger annual demand, the less attractive a discount schedule will be.
E) The smaller the ordering cost, the less attractive a discount schedule will be.

Question

Quizplus · Accepted Answer

A larger annual demand generally makes a discount schedule more attractive because the savings from purchasing at a lower price can be significant when spread over a large number of units.

Which of the Following Statements About Quantity Discounts Is False