When ordering a single product, it is optimal for the buyer to order the minimum of the available capacity and the optimal order quantity. When ordering multiple products,
A) the buyer should treat each product as a unique purchase and optimize each on an individual basis.
B) the buyer must consider trade-offs between ordering more of one product than another.
C) the buyer should average the cost, procurement, and holding parameters and create a basket product that consists of equal ratios of all items.
D) the buyer should construct a weighted average based on all individual item demands and optimize this quantity.
Answer: B
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