As the replenishment lot size grows,the cycle inventory at the firm grows,thus increasing the cost of holding inventory.

Name: As the replenishment lot size grows,the cycle inventory at the firm grows,thus increasing the cost of holding inventory.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

As the replenishment lot size increases, the cycle inventory also increases, which means the firm has to hold more inventory, resulting in higher inventory holding costs. Therefore, the statement is true.

As the Replenishment Lot Size Grows,the Cycle Inventory at the Firm