The general __________ problem is to batch requirements to minimize the sum of ordering and carrying cost each time an order is to be placed.
A) buying
B) ordering
C) lot-sizing
D) transportation
E) cost analysis

Question

Quizplus · Accepted Answer

The given problem is the classic lot-sizing problem where the aim is to minimize the sum of ordering cost (i.e., the cost of placing an order) and carrying cost (i.e., the cost of holding the inventory until the next order arrives). Hence, the best choice is C, lot-sizing.

The General __________ Problem Is to Batch Requirements to Minimize