Question

Which of these statements about pipeline inventory is best? A. Changing an item's lot size does not directly affect the average level of the pipeline inventory. B. Pipeline inventory exists to avoid customer service problems. C. None of the other options D. Pipeline inventory is used to even out volatile fluctuations in supply or demand. E. Shorter lead times create more pipeline inventory.

Answer 1

Answer: Changing an item's lot size does not directly affect the average level of the pipeline inventory.