Question

Which of the following statements about quantity discounts is false?

A) The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs.

B) In inventory management, item cost becomes relevant to inventory decisions only when a quantity discount is available.

C) If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule.

D) The larger annual demand, the less attractive a discount schedule will be.

E) The smaller the ordering cost, the less attractive a discount schedule will be.

Answer

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