Least unit cost can be used for lot sizing in an material requirements planning (MRP) system.
In material requirements planning (MRP), lot sizing (also known as batching) is the process of changing the net required quantities before they are converted into planned order receipts, and subsequently planned order releases, in an MRP system.
The net needs of components or materials are referred to as material requirements planning (MRP). A way to unify in terms of the duration and another approach to unify in terms of the quantity are the two primary forms of lot sizing. The former has "Fixed Period Requirements," which, in general, is appropriate for the pricey commodities whose demand fluctuates. The latter is appropriate for products whose demand is comparatively consistent and incorporates "Fixed Period Requirements" or "Economic Lot Sizing." There are more lot sizing types, as seen in the picture, in addition to these.
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