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.

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Definitions:

Checking Account

A bank account that allows the account holder to make deposits, withdrawals, and write checks against available funds.

National Guard

A reserve military force composed of state National Guard militia members or units under federally recognized active or inactive armed force service.

Livestock

Domesticated animals raised in an agricultural setting to produce commodities such as food, fiber, and labor.