Under fixed-interval lot sizing,order sizes for component parts are determined based on which one of the following?
A)Gross requirements for one period.
B)Net requirements for some predetermined number of periods.
C)Economic order quantity for one period.
D)Gross requirements - net requirements for a predetermined number of periods.
E)Net requirements - amount on-hand for a predetermined number of periods.

Question

Quizplus · Accepted Answer

Under fixed-interval lot sizing, order sizes are determined based on net requirements for some predetermined number of periods. This means that the system calculates the amount needed to fulfill customer demand for a set number of periods (typically weeks or months), taking into account on-hand inventory and scheduled receipts, and places an order to cover this demand. This approach helps to avoid stockouts and reduce inventory holding costs.

Under Fixed-Interval Lot Sizing,order Sizes for Component Parts Are Determined