Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount of average inventory?
A) Periodic order quantity (POQ), with P = 2
B) Fixed order quantity (FOQ)
C) Economic order quantity (EOQ)
D) Lot for lot (L4L)

Question

Quizplus · Accepted Answer

The Lot for Lot (L4L) lot-sizing rule minimizes average inventory by ordering exactly what is needed for production, thus avoiding excess inventory.

Which One of the Following Is an MRP Lot-Sizing Rule