Which one of the following statements about lot-sizing rules is True?
A) The periodic order quantity (POQ) rule seeks to create inventory remnants.
B) If the POQ rule is used, an item's lot size can vary each time an order is placed.
C) The lot-for-lot (L4L) rule is a special case of the fixed-order quantity (FOQ) rule.
D) All lot-sizing rules seek to minimize inventory levels.

Question

Quizplus · Accepted Answer

The statement that is true is option B. With the POQ rule, the lot size can change each time an order is placed. Option A is incorrect because the POQ rule seeks to avoid remnants. Option C is incorrect because L4L is a special case of the POQ rule. And option D is incorrect because some lot-sizing rules, such as the economic order quantity (EOQ) rule, seek to minimize inventory costs, but not necessarily inventory levels.

Which One of the Following Statements About Lot-Sizing Rules Is