Which of the following statements is true?
A) The optimal order quantity,Q*,is fairly sensitive to errors in estimates of unit costs,as demonstrated by the fact that Q* will increase by a factor of 2-squared if the acquisition cost,a,is doubled.
B) The optimal order quantity,Q*,is fairly sensitive to errors in estimates of unit costs,as demonstrated by the fact that Q* will increase by a factor of 2-squared if the carrying cost,c,is halved.
C) The optimal order quantity,Q*,is fairly insensitive to errors in estimates of unit costs,as demonstrated by the fact that Q* will increase by a factor of only 4-square-root if the acquisition cost,a,is doubled.
D) The optimal order quantity,Q*,is fairly insensitive to errors in estimates of unit costs,as demonstrated by the fact that Q* will increase by a factor of only 2-square-root if the acquisition cost,a,is doubled.
Correct Answer:
Verified
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