An inventory model with quantity discounts has all of the following features, except ________.
A) savings in manufacture
B) savings in transportation
C) increased holding costs
D) increased ordering costs

Question

Quizplus · Accepted Answer

Increased ordering costs are not a feature of an inventory model with quantity discounts. Typically, quantity discounts are offered to encourage larger purchases, which can lead to savings in manufacturing and transportation, and potentially increased holding costs due to the larger quantities being stored. However, the ordering costs per order may decrease due to the larger quantities ordered less frequently, not increase.

An Inventory Model with Quantity Discounts Has All of the Following