Question: Cycle Stock 20 days Average Inventory = 30 days 20 days Replenishment Lead Time 20 days 40 days Assume the economy turned for the worse

Cycle Stock 20 days Average Inventory = 30 days

Cycle Stock 20 days Average Inventory = 30 days 20 days Replenishment Lead Time 20 days 40 days Assume the economy turned for the worse and people don't have as much of disposable income now as they did just a week ago. Less disposable income translates into less demand. How would the daily demand line in the figure above be affected by this slower than usual demand? (Reminder: the daily demand line is the sloped line on each "tooth" in the diagram above) The line would get shorter The line would get longer The line would become less steep (more horizontal-like) The line would become steeper (more vertical-like)

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