Final answer:
The most effective way to reduce the inventory period is by implementing a just-in-time (JIT) inventory system, which decreases the need for holding inventory by optimizing the inflow of supplies to match production needs.
Step-by-step explanation:
The activity most apt to reduce the inventory period is B) Implementing a just-in-time (JIT) inventory system. A JIT system involves receiving goods only as they are needed in the production process, which minimizes inventory costs and reduces the inventory period substantially. It contrasts with increasing order quantities, which would actually increase the inventory period by maintaining higher levels of stock. Lengthening supplier lead times would also extend the duration items are held in inventory. Utilizing a fixed-order quantity model on its own doesn't necessarily reduce the inventory period compared to a JIT system, which targets several inefficiencies in the inventory management process.
The introduction of JIT in the 1980s by American car manufacturers was a crucial change in supply chain management. This strategy demands a close relationship with suppliers and high-quality control standards. Lowering inventory levels offers benefits like reduced warehousing costs and immediate problem detection, albeit it can also put downward pressure on wages and benefits by fostering competition among suppliers.