Which lot-sizing technique sets the order quantity equal to the net requirements for a fixed number of periods, making the number of periods to order variable?

• A. Lot-for-lot
• B. Economic order quantity
• C. Fixed quantity
• D. Period order quantity

Answer: (D)

Periodic order quantity means you decide how much to order by summing the net requirements for a fixed number of upcoming periods. So the order size is tied to a forecasted horizon (for example, the next three periods), not to a single period’s need or to a fixed quantity.

Because the net requirements for those periods can vary with demand, the amount you order changes over time. If the upcoming demand is high, you order a larger quantity to cover the window; if it’s lower, the quantity is smaller. That variability in the horizon’s net need makes the number of periods that an order is intended to cover effectively variable, even though the window length is fixed in planning. This distinguishes periodic order quantity from lot-for-lot (one-period needs), EOQ (fixed order size), or fixed-quantity methods.