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

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.

Quantity Discounts

Price reductions offered to buyers who purchase goods or services in large volumes, incentivizing bulk purchases and increasing overall sales.

Cost-Minimizing Order Quantity

The optimal amount of inventory an entity should purchase to minimize total costs including holding, ordering, and shortage costs.

Holding Costs

Expenses associated with storing inventory until it is sold or used, including warehouse space, insurance, and spoilage costs.