Lot-for-lot ordering in MRP eliminates the holding costs for parts that are carried over to other periods.

Name: Lot-for-lot ordering in MRP eliminates the holding costs for parts that are carried over to other periods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Lot-for-lot ordering in Material Requirements Planning (MRP) involves ordering only the exact quantity needed for production, thus minimizing or eliminating inventory holding costs for parts carried over to other periods.

Lot-For-Lot Ordering in MRP Eliminates the Holding Costs for Parts