What costs are considered in the quantity discount model?
A) annual ordering costs + annual holding costs
B) annual purchasing costs + annual holding costs + annual ordering costs
C) annual ordering costs + annual holding costs + annual shortage costs
D) annual purchasing costs + annual ordering costs + annual shortage costs
E) ordering costs per order + annual holding costs

Question

What costs are considered in the quantity discount model?
A) annual ordering costs + annual holding costs
B) annual purchasing costs + annual holding costs + annual ordering costs
C) annual ordering costs + annual holding costs + annual shortage costs 
D) annual purchasing costs + annual ordering costs + annual shortage costs 
E) ordering costs per order + annual holding costs

Quizplus · Accepted Answer

The quantity discount model considers annual purchasing costs, annual holding costs, and annual ordering costs.

What Costs Are Considered in the Quantity Discount Model