Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?
A)gross requirements
B)net requirements
C)economic order quantity
D)gross requirements - net requirements
E)net requirements - amount on-hand

Question

Quizplus · Accepted Answer

Lot-for-lot order sizes are determined directly from net requirements, which is the exact amount needed to fulfill the planned production or customer demand without excess inventory. It is a type of inventory replenishment strategy that aims to minimize holding costs and reduce waste.

Under Lot-For-Lot, Order Sizes for Component Parts Are Essentially Determined