Lot-For-Lot (LFL)

question 72

Multiple Choice

Lot-for-lot (LFL) :

• A) minimizes purchase or setup costs.
• B) maximizes the amount of inventory that need to be carried.
• C) ignores the cost associated with purchase orders.
• D) masks the true nature of dependent demand.

---

Definitions:

Power Base

the sources of influence and authority an individual or organization possesses, such as expertise, control of resources, or personal relationships.

Positive Reinforcement

A principle in behavioral psychology where the introduction of a rewarding stimulus following a desired behavior increases the likelihood of that behavior being repeated in the future.

Salary Increases

The process of raising an employee's pay rate, typically based on factors like performance, inflation, and market rates.

Aspirational Reference Groups

Social groups that individuals aspire to join or emulate, influencing their choices and behaviors to align with perceived group norms.