Which of these statements about pipeline inventory is best?
A) Shorter lead times create more pipeline inventory.
B) Changing an item's lot size does not directly affect the average level of the pipeline inventory.
C) Pipeline inventory exists to avoid customer service problems.
D) Pipeline inventory is used to even out volatile fluctuations in supply or demand.

Question

Quizplus · Accepted Answer

Pipeline inventory is the inventory in transit between two points and is not directly affected by changes in lot size, but rather by lead time and demand rate.

Which of These Statements About Pipeline Inventory Is Best