Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs?
A)economic order quantity
B)economic run size
C)lot-for-lot
D)part-period
E)all of the above

Question

Quizplus · Accepted Answer

Lot-for-lot ordering is a lot sizing method that is used when there are setup costs, and holding costs are not a major concern. This method is useful when there is little or no inventory carrying capacity, and it is best when ordering small quantities is less expensive than ordering a larger quantity and storing it. The other lot sizing methods, namely economic order quantity, economic run size, and part-period, are all used to balance ordering and holding costs.

Which of the Following Lot Sizing Methods Does Not Attempt