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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Definitions:

Generalized Anxiety Disorder

Feelings of dread and foreboding and sympathetic arousal of at least six months’ duration.

Persistent Anxiety

A state of continuous worry and nervousness that may not be related to any specific threat or issue.

Phobic Object

An object or situation that triggers an irrational and intense fear response in an individual.

Autonomic Arousal

The activation of the autonomic nervous system, which regulates involuntary physiological processes, such as heart rate, digestion, respiratory rate, and arousal in response to stress or excitement.