What might a company do to reduce the amount of cycle stock it holds?
A)Attempt to reduce supplier lead time.
B)Always take advantage of supplier quantity discounts.
C)Attempt to reduce demand variation.
D)Attempt to reduce order costs.
E)All of these.

Question

Quizplus · Accepted Answer

Alternatives A, B, and C would not reduce order quantity, so cycle stock would not be impacted. Reducing order costs would reduce order quantity.

What Might a Company Do to Reduce the Amount of Cycle