Asked by Courtney Gardner on Apr 24, 2024

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In general, the lot-for-lot approach should be used whenever economical.

Lot-For-Lot

An inventory management ordering policy where the order quantity is made exactly equal to the demand for the upcoming period.

Economical

Characterized by efficiency and avoidance of waste, in terms of both cost and resources.

  • Comprehend the methods of lot-sizing and the scenarios in which they are implemented.
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TK
Theepika Kamaraj7 days ago
Final Answer :
True
Explanation :
The lot-for-lot approach is typically the most cost-effective method for production planning and inventory control, as it minimizes holding costs and reduces the need for storage space. However, there may be situations where other approaches, such as economic order quantity or production smoothing, may be more appropriate.