The purpose of lot sizing in MRP is to
A) avoid the need for fixed lot sizes by allowing adjustable lots (lot-for-lot).
B) adjust orders to match the gross requirement, eliminating the need to carry ending inventory.
C) promote economical production lots and purchasing orders.
D) do all of the above.

Question

Quizplus · Accepted Answer

Lot sizing means finding the economically best lot size even though this may mean carrying inventory. Typically the lot sizing savings outweigh the cost of carrying inventory.

The Purpose of Lot Sizing in MRP Is to