As order size increases, total
A. inventory costs will increase, reach a maximum and then quickly decrease.
B. inventory cost will decrease, reach a minimum and then increase.
C. ordering costs will initially increase while total carrying cost will continue to decrease
D. carrying cost decreases while the total ordering cost increases
Answer:B
As order size increases, total
A. inventory costs will increase, reach a maximum and then quickly decrease. B. inventory cost will decrease, reach a minimum and then increase. C. ordering costs will initially increase while total carrying cost will continue to decrease D. carrying cost decreases while the total ordering cost increases