If Setup Costs Are Essentially Zero (Negligible When Compared to Carrying

question 57

Multiple Choice

If setup costs are essentially zero (negligible when compared to carrying costs) , which approach should be used for lot sizing?

• A) lot for lot
• B) fixed order quantity
• C) period order quantity with POQ = 6 periods
• D) period order quantity with POQ = 2 periods
• E) period order quantity with POQ = 4 periods

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