Which of the Following Is a Dynamic Lot-Sizing Technique That

question 41

Multiple Choice

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?

• A) Kanban
• B) Just-in-time system
• C) MRP
• D) Least unit cost
• E) Least total cost

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Definitions:

EOQ

Economic Order Quantity, a formula used in operations management to determine the optimal order size that minimizes the total inventory holding costs and ordering costs.

Push Inventory

A strategy where products are produced or supplied based on projected demand rather than actual customer orders.

Zero Inventories

An inventory management approach aimed at minimizing stock levels, often associated with Just-In-Time (JIT) manufacturing systems.