Which of the Following Is TRUE Regarding the POQ Lot-Sizing

question 96

Multiple Choice

Which of the following is TRUE regarding the POQ lot-sizing method?

• A) Each POQ interval is recalculated at the time of the order release.
• B) Each order quantity and POQ interval are recalculated at the time of the order release.
• C) The POQ interval and all order quantities remain fixed throughout the planning horizon.
• D) Each order quantity is recalculated at the time of the order release.
• E) POQ lot sizes are always at least as large as the EOQ lot sizes would be.

Appreciate the different needs for holding cash: transactional, precautionary, and speculative.

Understand the mechanisms to reduce collection float and the role of electronic payments in managing float.

Recognize the costs associated with holding too little or too much cash, and the role of money market instruments in liquidity management.

Learn the effects of environmental factors on float management.

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