As the number of order cycles per season increases,
A)the leftover inventory increases,but at a decreasing marginal rate.
B)the leftover inventory increases and at an increasing marginal rate.
C)the leftover inventory decreases,and at an increasing marginal rate.
D)the leftover inventory decreases,but at a decreasing marginal rate.

Question

Quizplus · Accepted Answer

As the number of order cycles per season increases, companies can more accurately match supply with demand, leading to a decrease in leftover inventory. However, as the system becomes more efficient, the marginal rate of decrease in leftover inventory will slow down because the initial adjustments remove the most significant inefficiencies, leaving less room for improvement.

As the Number of Order Cycles Per Season Increases