For the Lot-Sizing Technique Known as Lot-For-Lot to Be Appropriate

question 98

Multiple Choice

For the lot-sizing technique known as lot-for-lot to be appropriate:

• A) future demand should be known for several weeks.
• B) setup cost should be relatively small.
• C) annual volume should be rather low.
• D) item unit cost should be relatively small.
• E) the independent demand rate should be very stable.

---

Definitions:

Mediation

Intervention in a dispute in order to resolve it.

FICA

refers to the Federal Insurance Contributions Act tax, a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.

Unemployment

A situation where an individual who is actively searching for employment is unable to find work.

FUTA

The Federal Unemployment Tax Act, a United States federal law that funds state workforce agencies and unemployment insurance for workers who have lost their jobs.