Question

9. In an EOQ system, single unit lot sizes only make sense when:

a. Demand is very high and unit value is low

b. Demand is very low and unit value is high.

c. Order costs are extremely low.

d. a and c both create a situation where a unit lot size is appropriate

e. b and c both create a situation where a unit lot size is appropriate

Answer 1

e. b and c both create a situation where a unit lot size is appropriate

In such cases the single unit lot sizes may be applicable as the demand is low and the unit value is high accordingly for the same.