Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique?
What will be an ideal response?
Both methods produce a balance between setup and holding costs, but the POQ does not create excess inventory as the EOQ does. In other words, the EOQ may result in ending inventory in a period that is insufficient to satisfy the following period's demand. The POQ never does that.
You might also like to view...
One disadvantage of direct-to-customer channels is that they
A. require the producer to coordinate with many retailers. B. are not suitable when the number of transactions is small or when orders are large. C. make it more difficult to serve buyers who want to lease rather than buy products. D. are illegal in business and organizational markets. E. None of these answers is correct.
Which type of retailer is a large-scale discount operation and open to members only?
a. warehouse clubs b. catalog showrooms c. warehouse showrooms d. specialty stores e. e-tailing
Both current voice-mail systems and older answering machines tend to suffer from low ____.
A. proximity B. fidelity C. pace D. signal strength
Rebecca is one of the few reliable programmers of her organization who is authorized to work on a closed source project. The project will be especially useful to track the progress of outsourced activities. Which of the following statements is most likely to be TRUE of Rebecca's project?
A. Only users and developers will be allowed to alter the source code of the project. B. The source code will eventually be made open source. C. Only trusted programmers will be allowed to make changes to the project. D. Programmers could alter the source code based on their interests and goals. E. Anyone could obtain the source code for the project.