The lot-sizing rule that generates the highest level of average inventory because it creates inventory remnants is
A) lot-for-lot (L4L).
B) periodic order quantity (POQ).
C) fixed order quantity (FOQ).
D) usage quantity.

Question

Quizplus · Accepted Answer

The fixed order quantity (FOQ) rule generates the highest level of average inventory because it involves ordering a set quantity each time, regardless of demand, which can lead to excess inventory and remnants.

The Lot-Sizing Rule That Generates the Highest Level of Average