Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?
A) gross requirements
B) net requirements
C) economic order quantity
D) gross requirements and net requirements
E) net requirements and amount on hand

Question

Quizplus · Accepted Answer

Lot-for-lot ordering is a type of order quantity determination where the order size is based on the net requirements of the component parts, which is the amount needed to satisfy the gross requirements minus the amount already on hand. Therefore, the order sizes for component parts are determined directly from net requirements under lot-for-lot ordering.

Under Lot-For-Lot, Order Sizes for Component Parts Are Essentially Determined