Which lot sizing rule uses the economic order quantity (EOQ) calculation?
A) Both lot-for-lot (LFL) and periodic-order quantity (POQ) rules
B) Only fixed-order quantity (FOQ) rule
C) Only periodic-order quantity (POQ) rule
D) Both fixed-order quantity (FOQ) and periodic-order quantity (POQ) rules

Question

Quizplus · Accepted Answer

Both fixed-order quantity (FOQ) and periodic-order quantity (POQ) rules use the economic order quantity (EOQ) calculation to determine lot sizes. FOQ orders a fixed quantity each time, while POQ orders enough to meet demand for a certain time period. LFL, on the other hand, orders exactly what is needed to satisfy demand for a given period, and does not use the EOQ calculation.

Which Lot Sizing Rule Uses the Economic Order Quantity (EOQ)