Animal shelters tend to order Sodium Barbipentathol in large batches (e.g., enough to last 6 months or more). Smaller quantities would be ordered (e.g., a couple of weeks worth) except government regulations require extensive and detailed paperwork to be submitted with each order. This example is most closely related to the following managerial insight:
a. the order quantity increases as the holding cost rate decreases
b. the order quantity increases as the cost per order increases
c. the order quantity increases as the shortage cost rate decreases
d. the order quantity increases as the trade balance decreases.