A company producing perishable goods $($e$.$g$.,$ fresh produce$)$ is determining how much inventory to stock. The expected cost of underage $($not stocking enough$)$ and the expected cost of overage $($stocking too much$)$ both influence the critical ratio where these costs intersect. Which of the following accurately describes the company$$s optimal inventory decision based on this concept?

Question $31$ options:

a$)$

The company should order the exact critical ratio quantity when the expected costs of underage and overage are equal.

b$)$

The company should order less$$when the expected cost of underage is greater than the expected cost of overage.

c$)$

The company should order more$$when the expected cost of underage is greater than the expected cost of overage.

d$)$

The company should ignore the critical ratio and stock inventory based solely on historical sales data.