If Lot Sizes Are Reduced by 50 Percent, What Impact

question 50

Multiple Choice

If lot sizes are reduced by 50 percent, what impact will this have on average inventory levels?

• A) Increase by 50%
• B) Increase by 100%
• C) Decrease by 25%
• D) Decrease by 50%

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Definitions:

Random Selection

A process of choosing a sample from a population such that every individual has an equal chance of being selected.

Stratified Random Sample

A sampling method where the population is divided into subgroups (strata) that share similar characteristics, and random samples are then taken from each subgroup to ensure representation across the population's diversity.

Systematic Random Sample

A sampling method where elements are selected from an ordered sampling frame using a starting point and a fixed periodic interval.

Subset

A set containing some or all elements of another set, without any additional elements.