In a noninstantaneous replenishment model, as the daily demand approaches the daily production rate, the:
A) number of production runs per year decreases.
B) length in days of a production run increases.
C) economic lot size increases.
D) time between production runs decreases.

Question

Quizplus · Accepted Answer

In a noninstantaneous replenishment model, as the daily demand approaches the daily production rate, the time between production runs decreases. This is because as demand and production become closer together, it is necessary to produce more frequently to meet demand and avoid stockouts.

In a Noninstantaneous Replenishment Model, as the Daily Demand Approaches