The part-period method for lot sizing attempts to balance setup and holding costs.

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The part-period method is designed to find a balance between setup costs and holding costs by dividing the planning horizon into equal periods and calculating the required lot size for each period. This approach helps to reduce both setup and holding costs, as smaller lot sizes can minimize holding costs, while larger lot sizes can reduce setup costs.

The Part-Period Method for Lot Sizing Attempts to Balance Setup