The use of small lot sizes in lean operations is in conflict with the EOQ approach since setup costs tend to be significantly higher than holding costs.

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Quizplus · Accepted Answer

Lean operations focus on reducing setup times and costs, making small lot sizes more feasible and compatible with the goal of minimizing total costs, unlike the traditional EOQ model which seeks a balance between setup and holding costs without necessarily reducing setup costs.

The Use of Small Lot Sizes in Lean Operations Is