In order to find the lowest cost ordering policy in a quantity discount model, you must compare the holding cost, ordering cost, and the price per unit for various order quantities.

Question

Quizplus · Accepted Answer

In a quantity discount model, the lowest cost ordering policy can be determined by comparing the total cost for different order quantities, which includes holding cost, ordering cost, and the price per unit. Therefore, the statement is true.

In Order to Find the Lowest Cost Ordering Policy in a Quantity