Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique? What will be an ...

Chinnab

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6 years ago

Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique? What will be an ...

Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique?

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lightingmcqueen

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6 years ago

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.

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