Question

Which of the following is true of the lot-for-lot (LFL) rule?

A. It minimizes the costs associated with production setups.
B. It ignores the costs associated with purchase orders.
C. It maximizes the amount of inventory that needs to be carried.
D. It masks the true nature of dependent demand

Answer 1

Answer: Option (B)

Step-by-step explanation:

L.F.L rule is abbreviated as Lot for Lot rule , and is known as the method or technique utilized for the lot sizing,under which the system in regards with the net requirements that are placed for the respective time period as the order quantity. This approach is generally used for the expensive commodities or the commodities sporadically required.