(D) Lot-for-lot lot-sizing technique should be used if the process has a low-cost setup.
What is lot-for-lot lot-sizing technique?
- The lot size is the process of unifying the calculated net requirements by a specific unit while taking cost reduction and work efficiency into account.
- There are two forms of lot sizing: one that unifies in terms of time and another that unifies in terms of quantity.
- Lot-for-lot lot-sizing technique is a method of lot sizing in which the net requirements for each period are the quantity of order.
- This strategy is usually used for pricey commodities and items with sporadic demand.
- If the process has a low-cost setup, the lot-for-lot lot-sizing technique should be applied.
Therefore, (D) the lot-for-lot lot-sizing technique should be used if the process has a low-cost setup.
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