Asked by Angel Castillo on Jul 21, 2024
Verified
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.
- Ascertain and evaluate different approaches to lot-sizing, focusing on holding costs among other significant factors.
Verified Answer
Learning Objectives
- Ascertain and evaluate different approaches to lot-sizing, focusing on holding costs among other significant factors.
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