**When quantity discounts are allowed, the cost-minimizing order quantity**

** ****Options:**

A. is always an EOQ quantity. B. minimizes the sum of holding and ordering costs. C. minimizes the unit purchase price. D. may be a quantity below that at which one qualifies for that price. E. minimizes the sum of holding, ordering, and product costs. |

### The Correct Answer Is:

E. minimizes the sum of holding, ordering, and product costs.