What Lot-Sizing Technique Is Generally Preferred When Inventory Holding Costs

question 176

Multiple Choice

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

• A) lot-for-lot
• B) EOQ
• C) part-period balancing
• D) the Wagner-Whitin algorithm
• E) quantity discounting

---

Definitions:

Price Inelastic

Describes a situation where the quantity demanded or supplied of a good or service changes little when its price changes.

Short Run

A time period in economics during which at least one input or factor of production is fixed and cannot be changed, limiting the immediate response to changes in demand or technology.

Long Run

A period in economics sufficient for all factors of production and costs to be variable, allowing firms to adjust to market conditions fully.

Bumper Crops

An exceptionally large crop yield, often much higher than average.