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

question 85

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)Two-bin system
• C)MRP II
• D)Least unit cost
• E)Least total cost

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Definitions:

Market Organization

A method of organization in which private parties make their own plans and decisions with the guidance of unregulated market prices. The basic economic questions of consumption, production, and distribution are answered through these decentralized decisions.

Competitive Markets

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar but differentiated, leading to competition on price, quality, and innovation.

Private Property Rights

Legal rights that grant individuals or organizations exclusive ownership and control over their property.

Competitive Market Economy

An economic system where businesses compete freely with minimal government intervention, prices are determined by supply and demand, and resources are allocated through the price mechanism.