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Other Fields Homework Help Management Topic started by: Chinnab on Jan 30, 2018



Title: Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique? What will be an ...
Post by: Chinnab on Jan 30, 2018
Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique?
 
  What will be an ideal response?


Title: Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique? What will be an ...
Post by: lightingmcqueen on Jan 30, 2018
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.