The lot- sizing rule that generates the highest level of average inventory because it creates inventory remnants is
A) periodic order quantity (POQ).
B) lot- for- lot (L4L).
C) fixed order quantity (FOQ).
D) usage quantity.

Question

Quizplus · Accepted Answer

The fixed order quantity (FOQ) rule generates the highest level of average inventory because it orders a set quantity each time, which can lead to excess inventory if demand is lower than expected, creating remnants.

The Lot- Sizing Rule That Generates the Highest Level of Average