Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs?
A) economic order quantity
B) economic run size
C) lot-for-lot
D) part-period
E) all of these

Question

Quizplus · Accepted Answer

Lot-for-lot lot sizing method only considers the exact amount of demand needed for the period and does not attempt to balance ordering and holding costs. Economic order quantity and economic run size try to balance ordering and holding costs, while part-period is a hybrid approach that considers fixed order costs for part of the order and replenishment costs for the rest.

Which of the Following Lot Sizing Methods Does Not Attempt