Management Wishes to Use a POQ Lot-Sizing Rule for an Item

question 88

Multiple Choice

Management wishes to use a POQ lot-sizing rule for an item that experiences an average demand of 30 units per week.If the desired average lot size is 120 units,what should P be?

• A)zero or one weeks
• B)two or three weeks
• C)four or five weeks
• D)more than five weeks

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Definitions:

Contributing Parties

Entities or individuals that contribute resources, information, or efforts towards a common project, goal, or agreement.

Fungible Goods

Items or goods that are interchangeable with others of the same type, quality, and quantity.

Gross Negligence

A lack of care that demonstrates a reckless disregard for the safety or lives of others, significantly beyond ordinary negligence.

Bailment

The temporary placement of control or possession of personal property into someone else's hands, for a specific purpose, with the expectation of its return.