Which of the following is NOT true regarding period order quantity method (POQ) of lot sizing? A) The order quantity is constant. B) The time interval of inventory coverage is constant. C) POQ is derived directly from the EOQ. D) POQ is better suited to lumpy demand than EOQ. E) POQ and EOQ will try to order the same number of times per year.

Question

Quizplus · Accepted Answer

The Period Order Quantity (POQ) method involves varying the order quantity to ensure a constant time interval of inventory coverage, unlike the Economic Order Quantity (EOQ) method where the order quantity is constant.

Which of the Following Is NOT True Regarding Period Order