The ordering of small, frequent orders
A)minimizes stockout costs.
B)minimizes ordering costs.
C)minimizes carrying costs.
D)minimizes all three.

Name: The ordering of small, frequent orders A)minimizes stockout costs. B)minimizes ordering costs. C)minimizes carrying costs. D)minimizes all three.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Ordering small, frequent orders minimizes carrying costs because it reduces the amount of inventory held at any given time, thus lowering storage and holding expenses.

The Ordering of Small, Frequent Orders