If usage is constant,as order size increases,annual order costs ____ but annual carrying costs ____.
A) increase ..... increase
B) decrease ..... decrease
C) increase ..... decrease
D) decrease ..... increase
E) remain the same ..... increase

Question

Quizplus · Accepted Answer

As order size increases, fewer orders are needed, reducing annual order costs, but larger order sizes increase inventory levels, raising annual carrying costs.

If Usage Is Constant,as Order Size Increases,annual Order Costs ____