The least unit cost method of lot-sizing adds ordering, stock-out, and inventory carrying costs for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

Question

Quizplus · Accepted Answer

The least unit cost method of lot-sizing focuses on minimizing the unit cost by considering ordering and inventory carrying costs, but it does not typically include stock-out costs in its calculation.

The Least Unit Cost Method of Lot-Sizing Adds Ordering, Stock-Out