Which Lot Sizing Rule Is Best When Inventory Carrying Costs

question 42

Multiple Choice

Which lot sizing rule is best when inventory carrying costs are high and setup/order costs are low?

• A)Lot for Lot (LFL)
• B)Fixed order quantity (FOQ)
• C)Periodic order quantity (POQ)
• D)Gross Requirements (GR)

---

Definitions:

Trade Show

An event or exposition where companies in a specific industry showcase and demonstrate their new products, services, or technologies to potential customers and partners.

Legally Defensible

A term describing a position, policy, or action that can be successfully upheld in a court of law or against legal scrutiny.

Performance Appraisal

A systematic evaluation of an employee's job performance and productivity, usually conducted by their manager or supervisor.

Appeal Procedures

The formal process through which an individual can formally challenge a decision made by an authority, especially within organizational or legal contexts.