Which of the Following Statements About Lot-Sizing Rules for MRP

question 151

Multiple Choice

Which of the following statements about lot-sizing rules for MRP is TRUE?

• A) The periodic order quantity (POQ) rule generates a higher level of average inventory, because it creates inventory remnants.
• B) FOQ reduces the amount of inventory on hand, by doing a better job of matching the order quantity the projected on-hand inventory quantity.
• C) The lot-for-lot rule minimizes inventory investment, but maximizes the number of orders placed.
• D) In general, the fixed order quantity rule introduces greater instability into the production process.

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