What Lot-Sizing Technique Is Generally Preferred When Inventory Holding Costs

question 53

Multiple Choice

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

• A) lot-for-lot
• B) EOQ
• C) POQ
• D) the Wagner-Whitin algorithm
• E) All of these are appropriate for the situation.

---

Definitions:

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Long-Term Investments

Assets that a company intends to hold for more than one year, including stocks, bonds, and real estate.

Bonds Retired

The process of redeeming bonds before their maturity date, effectively removing them from circulation.

Old Equipment

Refers to machinery or tools that have been used over an extended period and may now be considered outdated or less efficient.