# 12.4 Batch Sizing, or Lot Sizing

## Course section 12.4: Subsections and their intended learning outcomes

• ##### 12.4 Batch Sizing, or Lot Sizing

Intended learning outcomes: Explain combining net requirements into batches. Differentiate between different batch-sizing policies.

• ##### 12.4.1 Combining Net Requirements into Batches by Policies such as Lot-for-lot, Optimum Number of Merged Demands or Partial Orders, and Economic order quantity (EOQ)

Intended learning outcomes: Disclose various batch sizing policies, namely lot-for-lot, optimum number of (merged) demands, optimum number of partial lots, optimum batch size (economic order quantity, EOQ). Explain the “blowthrough” technique linked with the lot-for-lot sizing policy.

• ##### 12.4.1b Batch Sizing Policies such as Period Order Quantity (or Optimum Length of Order Cycle), Part Period Balancing (PPB), Dynamic Optimization

Intended learning outcomes: Disclose various batch sizing policies, namely the period order quantity (or optimum length of order cycle), part period balancing (PPB), dynamic optimization.

• ##### 12.4.2 Comparing Dynamic Optimization, Part Period Balancing (PPB), Period Order Quantity (or Optimum Length of Order Cycle), and Economic Order Quantity (EOQ)

Intended learning outcomes: Explain, using an example, the comparison of various batch-sizing policies, namely dynamic optimization, part period balancing (PPB), the period order quantity (or optimum length of order cycle), and the optimum batch size (economic order quantity, EOQ).

## Course 12: Sections and their intended learning outcomes

• ##### Course 12 – Deterministic Materials Management

Intended learning outcomes: Produce an overview on demand and available inventory along the time axis. Describe deterministic determination of independent demand. Explain in detail the deterministic determination of dependent demand (Material Requirements Planning, MRP). Differentiate various lot sizing techniques. Disclose how to analyze the results of the MRP.

• ##### 12.1 Demand and Available Inventory along the Time Axis

Intended learning outcomes: Explain the projected available inventory and its calculation. Describe scheduling and cumulative projected available inventory calculation. Produce an overview on operating curves for stock on hand.

• ##### 12.2 Deterministic Determination of Independent Demand

Intended learning outcomes: Present the customer order and distribution requirements planning (DRP). Disclose the consumption of the forecast by actual demand.

• ##### 12.3 Deterministic Determination of Dependent Demand

Intended learning outcomes: Describe characteristics of discontinuous dependent demand. Explain material requirements planning (MRP) and planned orders. Disclose the determination of the timing of dependent demand and the load of a planned order.

• ##### 12.4 Batch Sizing, or Lot Sizing

Intended learning outcomes: Explain combining net requirements into batches. Differentiate between different batch-sizing policies.

• ##### 12.5 Analyzing the Results of Material Requirements Planning (MRP)

Intended learning outcomes: Present projected available inventory and pegging. Produce an overview on action messages.

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• ##### 12.8 Scenarios and Exercises

Intended learning outcomes: Calculate projected available inventory. Determine net requirements and planned release using the MRP technique. Differentiate between order point technique and MRP technique.

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