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

question 15

Multiple Choice

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

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

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Definitions:

Thoracic Duct

The largest lymphatic vessel in the human body, which drains lymph into the bloodstream from the lower and left side of the body.

Lumbar Trunk

A term typically used to describe the part of the body that includes the lower spine and surrounding region.

Lymph Follicles

Small, organized centers found within lymphoid tissues that contain densely packed lymphocytes, involved in immune responses.

Axillary Nodes

Lymph nodes located in the armpit region that filter lymph fluid as part of the immune system.