Question: Which method for ordering inventory should we use when the demand in the organization is lumpy? a) Economic order quantity (EOQ) b) Period-order quantity c)

Which method for ordering inventory should we use when the demand in the organization is lumpy?

a) Economic order quantity (EOQ)

b) Period-order quantity

c) Lot-for-lot

d) Min-max

Step by Step Solution

★★★★★

3.43 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

b Pe... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Operations Management Questions!

Q:

Formularium Management III Kevin Denis June 18, 2014 Use at own risk. Part I Inventory Control 1 Known demand (p198) 1.1 Basic EOQ model (p210) Assumptions: 1. Demand is xed at units per unit time....

Q:

a. SMC recently re-named itself from Silo Manufacturing Corporation to give the impression they were a modern manufacturer. Located in Blacksburg, Virginia, SMC is a regional provider of grain...

Q:

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Q:

Sam's Cat Hotel operates 52 weeks a year and uses a continuous review inventory system. It purchases kitty litter at $14.54 per bag. The following information is avallablo: Demand =120 bags per week...

Q:

please all 5 #1s to answer 2A. The annual demand for admission kits for patients with infectious conditions such as methicillin-resistant staphylococcus aureus (MRSA) and C-diff is 2,200. The...

Q:

Which one is correct? Considering our discussion on inventory, a product has a demand of 3000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The EOQ model is...

Q:

21 REQUIRED Use the information given below to calculate the value of closing inventory as at 30 September 2019 and the value of issues/transfers to the production department during September 2019...

Q:

The following 4 questions are related to another inventory situation at NES. The majority of products that NES sells to retailers are salty snacks sold as a collection in boxes that contain 40 units...

Q:

Part 1 The use of lot-for-lot in MRP is consistent with a method known as Group of answer choices lot sizing. capacity planning. master scheduling. lean manufacturing. Part 2 The primary concept...

Q:

Explanation: 1 . Total Cost using Lot - for - Lot Technique The Lot - for - Lot ( L 4 L ) technique involves ordering exactly what is needed for production based on demand forecasts without holding...

Q:

Neena wants to accumulate $18 000 in a fund earning 3.6% compounded semi-annually. How much must she deposit at the end of each year for eight years?

Q:

Memory B cells a) Are not important. b) Are short lived. c) Do not secrete antibodies. d) Secrete enormous amounts of fatty acids. e) Are cells that stimulate phagocytosis?

Q:

Select all that apply Incorrectly or arbitrarily assigning common costs to segments: holds managers responsible for costs they cannot control. could reduce the overall profits of the company....

Q:

Lean accounting obj. 2 Formula One Displays Inc. manufactures and assembles automobile instrument panels for both Yokohama Motors and Detroit Motors. The process consists of a lean product cell for...

Q:

Henris Custom Gowns has six jobs waiting to be processed. Each gown is at the beading work center. The job information is shown here. (a) Determine the sequence Henri should follow if he uses the SPT...

Q:

Henri has heard of the LPT (longest processing time) priority rule and wonders how that would change the sequence of the jobs listed in Problem 5. (a) Determine the sequence Henri should follow if he...

Q:

Henri recently learned about global priority rules. He is interested in the slack over remaining operations (S/RO) rule. (a) Using the data in Problem 5, determine the sequence Henri should follow if...

Q:

E7-16 Dollar-Value LIFO A company adopted the LIFO method when its inventory was $1,800. One year later its ending inventory was $2,100, and costs had increased 5% during the year. Required: What is...

Q:

The mixing department of a company's output during the period consists of 24600 units completed and transferred out, and 15700 Units in ending Work in Process inventory that were 20% complete related...

Q:

Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock for $110,000 cash. Purchased $205,000 of merchandise on account. Sold merchandise that...