The Optimal Order Quantity for Acme is the quantity that:

Group of answer choices

Minimizes the holding cost

Results in the lowest total cost

Reduces the Total Ordering Cost

Maximizes Expected Profit

Minimizes the lead time to delivery.One of ACME

$$

s products is seasonal and the bulk of its sales take place in the October

$-$

January timeframe. ACME can only place one order for this season owing to the fact that the major supplier is in China and the lead times are long. ACME has estimated

$($

based on history

$)$

$$that its average demand for the product is

$20$

$,$

$000$

$$units at a sales price of $

$150$

$$per unit. The cost to ACME for acquiring the product from its Chinese supplier is $

$70$

$$per unit. Any excess stock that ACME has in January is sold off to a discount merchandiser for $

$40$

$$per unit.