Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?
A) Kanban
B) Just-in-time system
C) MRP
D) Least unit cost
E) Least total cost

Question

Quizplus · Accepted Answer

The dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup costs for various lot sizes and then selects the lot size in which these are most nearly equal is the least total cost approach. This method aims to minimize the total cost of inventory by determining an optimal order quantity that balances the cost of holding inventory against the cost of ordering and setup. Therefore, E is the best choice.

Which of the Following Is a Dynamic Lot-Sizing Technique That