Which One of the Following Is an MRP Lot-Sizing Rule

question 88

Multiple Choice

Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount of average inventory?

• A) periodic order quantity (POQ), with P = 2
• B) fixed order quantity (FOQ)
• C) economic order quantity (EOQ)
• D) lot for lot (L4L)

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Definitions:

Return on Assets

A financial ratio that indicates the profitability of a company in relation to its total assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Net Income

Refers to the total earnings or profit of a company after subtracting all expenses from its total revenue.

Total Debts

The sum of all financial obligations a company owes to outside parties, including both short-term and long-term liabilities.