Question: Managers at Supplier A have determined that if they increase the minimum order size to 9 5 liters , they can decrease their costs to

Managers at Supplier A have determined that if they increase the minimum order size to 95liters, they can decrease their costs to $18 per liter. Should they do it?
A.
Supplier A should decrease their cost to $18 per liter by increasing the minimum order quantity to 95 liters. Doing this will result in Supplier A being the leader in 2 of the 3 order winner categories and will likely win the business.
B.
There are no reasons to do it. Supplier A will definitely win the business.
C.
There are no reasons to do it. Supplier A will definitely lose the business.
D.
Supplier A should not decrease their cost to $18 per liter by increasing the minimum order quantity to 95 liters. Doing this will result in Supplier A being the leader in 0 of the 3 order winner categories and will likely lose the business.

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