A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order

A) all 4000 units at one time.
B) 200 units per order.
C) every 20 days.
D) 10 times per year.
E) none of the above.

Ordering Cost

Expenses associated with placing orders for goods or materials, including clerical and administrative costs, transportation, and any costs related to the ordering process itself.

Holding Cost

The expenses associated with storing unsold goods or materials, including storage, insurance, and obsolescence.

Cost-Minimizing Solution

An approach in operations management aimed at finding the least expensive way to achieve a specific objective without compromising on quality.