Identify the Several Lot-Sizing Algorithms Used in MRP

question 30

Essay

Identify the several lot-sizing algorithms used in MRP. Provide at least one advantage and one disadvantage of each.

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Definitions:

Average Rate

Usually refers to the mean value of a set of rates or percentages over a specified period or set of conditions.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.

Payback Period

The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates.