Which lot sizing rule is best when inventory carrying costs are high and setup/order costs are low?
A)Lot for Lot (LFL)
B)Fixed order quantity (FOQ)
C)Periodic order quantity (POQ)
D)Gross Requirements (GR)

Question

Quizplus · Accepted Answer

Lot for Lot (LFL) is best when inventory carrying costs are high and setup/order costs are low because it minimizes inventory by ordering only what is needed for each period, thus reducing carrying costs.

Which Lot Sizing Rule Is Best When Inventory Carrying Costs