Mia, a manager at Best Buy, increases the order size for a product that the company sells, which will ________.
A)increase both ordering costs and carrying costs
B)increase ordering costs and decrease carrying costs
C)decrease both ordering costs and carrying costs
D)decrease ordering costs and increase carrying costs

Question

Quizplus · Accepted Answer

Increasing the order size will lead to a decrease in ordering costs as there will be fewer orders placed. However, it will increase carrying costs as there will be more inventory to store.

Mia, a Manager at Best Buy, Increases the Order Size