For the Lot-Sizing Technique Known as Lot-For-Lot to Be Appropriate

question 98

Multiple Choice

For the lot-sizing technique known as lot-for-lot to be appropriate:

• A) future demand should be known for several weeks.
• B) setup cost should be relatively small.
• C) annual volume should be rather low.
• D) item unit cost should be relatively small.
• E) the independent demand rate should be very stable.

---

Definitions:

Exclusive Dealing

An agreement between a supplier and a retailer where the retailer agrees to only purchase goods from the supplier, excluding competitors.

Vertical Integration

A business strategy where a company expands its operations into different stages of production within its own industry.

Channel Captain

A dominant firm within a distribution channel that exercises authority and control over the activities of other channel members, often setting standards and practices.

Economic Influence

The impact that economic factors such as inflation, unemployment rates, and economic growth have on individuals, businesses, and government policy.