Using lot-sizing techniques, larger lot sizes can cause an increase in inventory, complicating plant logistics.
Lot sizing is to collect the calculated net conditions by a certain unit regarding cost reduction and job efficiency. There are two primary types of lot sizing:
-method to unify in terms of the course
-method to unify in terms of the amount.
Determining satisfactory lot sizes is required to maintain acceptable inventory and assistance levels. Minimum order quantities ordered by suppliers often blow up inventory levels, especially for items with long stock turn cycles. To determine the lot size that will minimize the costs, industrial corporations utilize Materials Requirements Planning (MRP).
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