Which of the following costs does NOT generally increase as order size is increased?
A) Stock-out costs
B) Storage costs
C) Production inefficiency costs
D) Working capital costs

Question

Quizplus · Accepted Answer

Stock-out costs typically decrease as order size increases because larger inventories reduce the likelihood of running out of stock. Storage, production inefficiency, and working capital costs generally increase with larger order sizes due to the need for more space, potential inefficiencies in handling larger quantities, and the increased investment in inventory, respectively.

Which of the Following Costs Does NOT Generally Increase as Order