What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

A) lot-for-lot
B) EOQ
C) part-period balancing
D) the Wagner-Whitin algorithm
E) quantity discounting

Inventory Holding Costs

The expenses associated with storing unsold goods, including costs related to warehousing, insurance, depreciation, and opportunity cost.

Lot-For-Lot

An inventory ordering strategy that matches the exact quantity needed for production, minimizing holding costs.

Wagner-Whitin Algorithm

An algorithm used in inventory management for determining the most cost-efficient timing and quantity of reordering to minimize costs.