When demand is steady,cycle inventory and lot size are related as
A)Cycle Inventory = Lot Size × 2.
B)Cycle Inventory = Lot Size*2.
C)Cycle Inventory = Lot Size/2.
D)Cycle Inventory = Lot Size = Q.

Question

Quizplus · Accepted Answer

Cycle inventory is typically half the lot size because it averages the maximum inventory level (at the time of replenishment) and the minimum (right before the next replenishment).

When Demand Is Steady,cycle Inventory and Lot Size Are Related