The economic production lot size represents the maximum quantity of on-hand inventory for a manufacturer.

Name: The economic production lot size represents the maximum quantity of on-hand inventory for a manufacturer.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The economic production lot size represents the optimal production quantity that minimizes the total cost of production and inventory. It takes into account the cost of set-up, production, and storage, and is not necessarily the maximum quantity of on-hand inventory for a manufacturer.

The Economic Production Lot Size Represents the Maximum Quantity of On-Hand