Which of the following is NOT a lever for reducing cycle inventories?
A)place purchased item orders at fixed intervals
B)reduce lot sizes for items moving in the supply chain
C)streamline methods for placing orders and making machine set ups
D)increase repeatability to eliminate the need for changeovers

Question

Quizplus · Accepted Answer

Placing purchased item orders at fixed intervals is a strategy for reducing the inventory, but it is not specifically related to cycle inventory. The other options are all related to reducing cycle inventory, which refers to the inventory that is necessary to meet demand during the replenishment lead time. Reducing lot sizes, streamlining methods for placing orders and making setups, and increasing repeatability all help to reduce the time it takes to replenish inventory, thus reducing the cycle inventory.

Which of the Following Is NOT a Lever for Reducing