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 in which these are most nearly equal?
A)Economic Order Quantity
B)Lot for lot
C)Least total cost
D)Least unit cost
E)ABC analysis

Question

Quizplus · Accepted Answer

The technique described in the question is the least total cost approach, which balances the cost of holding inventory with the cost of ordering more inventory. The other options listed (A) Economic Order Quantity, (B) Lot for lot, (D) Least unit cost, and (E) ABC analysis do not specifically compare carrying costs and setup/ordering costs to determine the optimal lot size.

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