Table 13.7.

-Use the information from Table 13.7. Which lot sizing rule results in the highest average inventory?
A) POQ, P = 3
B) FOQ = 75
C) FOQ = 100
D) L4L

Question

Table 13.7.

-Use the information from Table 13.7. Which lot sizing rule results in the highest average inventory?
A) POQ, P = 3 
B) FOQ = 75 
C) FOQ = 100 
D) L4L

Quizplus · Accepted Answer

The FOQ (Fixed Order Quantity) rule with a larger order size, such as 100, typically results in higher average inventory levels because it involves ordering larger quantities at once, leading to more inventory being held over time compared to other methods like L4L (Lot-for-Lot) or smaller FOQ sizes.

Table 13.7. -Use the Information from Table 13.7. Which Lot Sizing Rule