Author Question: For the lot-sizing technique known as lot-for-lot to be appropriate (Read 90 times)

kwoodring · **on:** Dec 3, 2019

Question 1

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?
◦ quantity discounting
◦ the Wagner-Whitin algorithm
◦ lot-for-lot
◦ part-period balancing
◦ EOQ

Question 2

For the lot-sizing technique known as lot-for-lot to be appropriate
◦ future demand should be known for several weeks.
◦ the independent demand rate should be very stable.
◦ setup cost should be relatively small.
◦ annual volume should be rather low.
◦ item unit cost should be relatively small.

jackie · **Reply #1 on:** Dec 3, 2019

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