The main benefit of reducing the lead time

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Reference no: EM13900428

A firm sells a product whose demand over the next couple years will be stable (so the order up-to model is used to manage its inventory). When the demand uncertainty is small (for example, the weekly demand has a mean of 100 and a standard deviation of 5), the main benefit of reducing the lead time is

to reduce the expected on-hand inventory at the end of every period.

to enable us to use the reactive capacity.

to reduce the pipeline stock.

none of the above.

Reference no: EM13900428

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