Which lot-sizing technique orders the quantity needed during a predetermined time between orders?
A) economic order quantity
B) periodic order quantity
C) lot-for-lot
D) time fencing
E) part-period balancing

Question

Quizplus · Accepted Answer

The periodic order quantity is a lot-sizing technique that orders the quantity needed during a predetermined time between orders. Therefore, this is the best choice for the given question. The economic order quantity (A) determines the optimal order quantity based on holding costs and ordering costs, but does not consider a predetermined time between orders. Lot-for-lot (C) orders exactly what is needed for each time period, which may not be the most efficient for production and inventory management. Time fencing (D) is a technique used in service industries to limit the time period when certain resources are available for scheduling. Part-period balancing (E) is a technique used to balance inventory levels across multiple warehouses or locations.

Which Lot-Sizing Technique Orders the Quantity Needed During a Predetermined