The basic procedure might suggest a series of small,
frequent orders. It may be cheaper and more
convenient to combine several of these small orders
into one larger one.
• This is called batching. There are four common
methods of batching:
– Lot-for-lot – where you order exactly the net
requirement suggested by MRP for each period.
This has the advantage of minimising the amount
of stock, but can give high ordering, delivery and
administration costs.