The Least Unit Cost Method of Lot-Sizing Technique Adds Ordering

question 32

True/False

The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

---

Definitions:

SRM

Supplier Relationship Management (SRM) is the systematic, strategic coordination of business processes between an organization and its suppliers to optimize the value delivered through the supply chain.

Supplier Evaluation

The process of assessing and approving potential suppliers by quantitative and qualitative assessment.

Order Management

The process of tracking and fulfilling sales orders, from the initial order placement to delivery to the customer.

ISCM

Integrated Supply Chain Management, the coordinated management of the entire supply chain from procurement to delivery for efficiency and competitiveness.