For the same safety inventory,an increase in lot size
A)decreases the fill rate but not the cycle service level.
B)increases the fill rate but not the cycle service level.
C)decreases both the fill rate and the cycle service level.
D)increases both the fill rate and the cycle service level.

Question

Quizplus · Accepted Answer

Increasing lot size means ordering larger quantities of inventory, which reduces the number of orders placed and increases the time between orders. This reduces the frequency of stockouts and increases the fill rate. However, the cycle service level is not affected as it is determined by the safety inventory level, which remains the same.

For the Same Safety Inventory,an Increase in Lot Size