If lot sizes are reduced by 50 percent, what impact will this have on average inventory levels?
A) Increase by 50%
B) Increase by 100%
C) Decrease by 25%
D) Decrease by 50%

Question

Quizplus · Accepted Answer

Reducing lot sizes by 50% means that each order will be for a smaller quantity. This will result in a decrease in the average inventory levels because there will be less inventory in stock at any given time. Therefore, option D is the best choice.

If Lot Sizes Are Reduced by 50 Percent, What Impact