Question

Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following? A. gross requirements B. net requirements C. economic order quantity D. gross requirements - net requirements E. net requirements - amount on-hand

Answer 1

Answer: B. net requirements

Step-by-step explanation:

Lot for lot is also referred to as Discreet Order Quantity which is a method for lot sizing in which the net requirements each time are quantity order. It is used mostly for expensive items and those which has demand that happens periodically or occasionally.

Net requirements refers to those items considered on their gross requirements (customers orders and forecast)not including the stock that is already there.

If there is insufficience in stock an order is made using the lot size.