A manufacturer's inventory levels are growing and service levels are dropping. Which of the following supply chain strategies is most appropriate to reduce inventory and improve service?

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Quizplus · Accepted Answer

By reducing setup time, the manufacturer can produce smaller batches more frequently, which will reduce overall inventory levels and improve service levels by ensuring that products are available when needed. Increasing safety stock would only further increase inventory levels, optimizing total cost doesn't address the issue at hand, and implementing batch operations without reducing setup time could actually lead to larger batch sizes and higher inventory levels.

A Manufacturer's Inventory Levels Are Growing and Service Levels Are