Question

Select 2 product in your household. 1-How the lot is determined for the product?

2- What order method for the product>

Answer 1

The two household products can be soft drinks and bread.

Answer 1= Lot is mainly termed as batch or group of the inventory. This can be decided on the basis of the quantity or expiry date. In case of soft drink, the lot is decided on the basis of the quantity as the expiry date of the soft drinks is relatively higher, but in case of bread, a lot is determined on the basis of expiry date due to limited shelf life

Answer 2= Order method is mainly the policy that is being used to replenish the product quantity. In the case of soft drink, the reorder quantity is decided on the basis of the safety stock that is when the number of soft drink bottles goes below a certain number, the order is placed.

In case of bread, the orders are placed on the basis of Just in time inventory management as the main objective of having the bread is to have the fresh bread