Assume the store orders boxes in batches of 100 but no quantity discounts are given. Which of the following statements is true? A. Monthly holding cost is greater than monthly ordering cost B. Monthly ordering cost is greater than monthly holding cost C. Monthly holding cost equals monthly ordering cost D. All of the above statements are true E. None of the above statements are true
B. Monthly ordering cost is greater than monthly holding cost
Explanation:
B is correct because monthly ordering cost for 15 orders ( quantity / order size) will be 15x20 =300 Which is higher than the holding cost = 100x1 =100
