A key to reducing cycle inventory is the reduction of lot size.

Question

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Lot size is the quantity of units produced or purchased in a single batch. By reducing the lot size, companies can produce or purchase smaller quantities at a time, which can lead to reduced cycle inventory. This is because smaller lot sizes allow for more frequent orders and production runs, which can help to better match supply with demand and reduce the amount of inventory held in the system.

A Key to Reducing Cycle Inventory Is the Reduction of Lot