Lot Size

The lot size (LS) (also known as the replenishment quantity (RQ) or the cycle stock (CS)) is the number of units that arrive in a replenishment lot or are produced in a manufacturing lot (Points 1, 2, and 3 in the figure). The average replenishment quantity (ARQ) is the average size of lot size replenishments derived by dividing the total replenishment quantity over a particular period of time by the number of replenishments received during that time.


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