1. In general, as the order size decreases

A. ordering costs decrease and carrying costs increase.

B. ordering costs increase and carrying costs decrease.

C. both ordering and carrying costs increase.

D. both ordering and carrying costs decrease.

2. An operations strategy which recognizes lowering carrying costs and increasing ordering costs will result in:

A. unchanged order quantities.

B. first decreased, then slight increased order quantities.

C. greatly increased order quantities.  

D. slightly decreased order quantities.

E. greatly decreased order quantities.