The term lot size signifies:
A) the total production of a single SKU for a one-year period.
B) the physical dimensions of the raw materials used to make a batch of one SKU.
C) the dimensions of the container used to ship an order to any location outside of company property.
D) the number of units of a single item that a company buys from a supplier.

Question

Quizplus · Accepted Answer

Lot size refers to the number of units of a single item that a company buys from a supplier. It is generally used in production planning and inventory management to determine the order quantity that will minimize inventory carrying costs while ensuring that there is enough stock to meet customer demand.

The Term Lot Size Signifies