What type of lot size procedure should be used to limit production based on a planning calendar?

The appropriate lot size procedure for limiting production based on a planning calendar is periodic lot sizing. This method aligns production schedules with specific time periods such as weeks, months, or seasons, enabling organizations to plan their production runs according to demand patterns influenced by their planning calendar. It helps in managing inventory more effectively and can take into account fluctuations in demand across different time frames.

Periodic lot sizing allows for the coordination of production activities with various calendar-driven events, which could include peak seasons or promotional periods. By producing in set intervals, this procedure ensures that production is timely and aligned with anticipated needs as dictated by the calendar, promoting efficient resource utilization and reducing excess inventory.

The other lot sizing methods, such as fixed, exact, and minimum lot sizing, do not inherently account for the constraints imposed by a planning calendar. Fixed lot sizing results in consistent production quantities regardless of time-specific demand, while exact lot sizing focuses on producing the exact amount needed without regard to time intervals. Minimum lot sizing establishes a threshold for the smallest quantity that can be produced but also doesn’t align with time-based considerations. Therefore, periodic lot sizing is the most suitable choice for managing production in accordance with a planning calendar.