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.