Question

if there were no costs or loss of time in changing from one product to another, what would the impact be? check all that apply.multiple select question.costs would be higherreduced inventory levelscosts would be lowerincreased inventory levelsmany small lots would be produced

Answer 1

The absence of changeover costs and time loss would result in reduced inventory levels, lower costs, and production of many small lots, as companies can efficiently meet diverse customer needs.

Step-by-step explanation:

If there were no costs or loss of time in changing from one product to another, the impact would primarily involve reduced inventory levels, lower costs, and the likelihood that many small lots would be produced. Without the constraints of changeover costs and downtimes, businesses can switch production lines more frequently without incurring extra expenses. This flexibility leads to lower costs as the need for maintaining large inventories diminishes, allowing companies to adopt just-in-time production strategies. Consequently, the production of many small lots becomes feasible, meeting diverse customer needs without negatively affecting cost efficiency. Therefore, costs would not be higher, and inventory levels would not increase under this scenario.