For the same safety inventory,an increase in lot size increases the fill rate but not the cycle service level.

Question

Quizplus · Accepted Answer

The fill rate is the proportion of demand that is satisfied from inventory, and an increase in lot size will lead to a larger quantity of inventory available to meet demand, thereby increasing the fill rate. However, the cycle service level measures the probability of not running out of stock during the replenishment lead time, and is not affected by lot size.

For the Same Safety Inventory,an Increase in Lot Size Increases