Mia, a manager at Best Buy, should be able to find Q, the most economic order size for a product, by ________.
A)locating where the carrying costs curve and the total costs curve intersect
B)locating where the carrying costs curve and the ordering costs curve intersect
C)locating where the carrying costs curve and the ordering costs curve are parallel
D)locating where the total costs curve and the ordering costs curve are parallel

Question

Quizplus · Accepted Answer

Q, the most economic order size for a product, can be found by locating where the carrying costs curve and the ordering costs curve intersect. This is because at this point, the total costs (which is the sum of carrying costs and ordering costs) are minimized, resulting in the most economic order size.

Mia, a Manager at Best Buy, Should Be Able to Find