Final answer:
Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods beyond the orders already received for those periods. It is false.
Step-by-step explanation:
True or False? Lot-for-lot ordering in MRP (Material Requirements Planning) provides coverage for some predetermined number of periods that extend beyond the orders already received for those periods.
Lot-for-lot ordering in MRP is a technique used in inventory management to determine the order quantity for materials. It ensures that the quantity ordered exactly matches the demand for a specific period, taking into account the inventory already on hand.
By providing coverage for some predetermined number of periods beyond the orders already received, lot-for-lot ordering helps to minimize excess inventory and reduces the possibility of stockouts. It is an efficient way to maintain optimal inventory levels and meet customer demand. This technique is designed to minimize carrying costs of inventory by not holding excess stock. It orders only what is needed for the upcoming production period based on the MRP calculations. Therefore, lot-for-lot ordering does not provide coverage for some predetermined number of periods beyond the orders already received for those periods.