Question: 2 0 ) What role does demand variability play in lot sizing decisions? Higher demand variability typically leads to larger order quantities to minimize stockouts.
What role does demand variability play in lot sizing decisions? Higher demand variability typically leads to larger order quantities to minimize stockouts. Demand variability has no impact on lot sizing decisions, as order quantities are determined solely based on economic factors. Lower demand variability allows for smaller order quantities to reduce the risk of excess inventory. Demand variability influences safety stock levels but does not affect the determination of order quantities.
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