The quantity of the replenishment order is based on the __________________________.
A) capacity available
B) size of the item
C) number of workers available
D) inventory space available
E) lot sizing rule used

Question

Quizplus · Accepted Answer

The quantity of replenishment order is based on the lot sizing rule used. Different lot sizing rules such as economic order quantity, fixed order quantity, or periodic order quantity can be used to determine the optimal order quantity. Factors such as capacity available, size of the item, number of workers available, inventory space available are considered in determining the lot sizing rule that is most appropriate for the situation. However, the quantity of the replenishment order itself is based on the lot sizing rule used.

The Quantity of the Replenishment Order Is Based on the __________________________