Identify managerial levers that reduce lot size and cycle inventory in a supply chain without increasing cost.
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Question:
Identify managerial levers that reduce lot size and cycle inventory in a supply chain without increasing cost. The key managerial levers for reducing lot size, and thus cycle inventory, in the supply chain without increasing cost are the following:
• Reduce fixed ordering and transportation costs incurred per order.
• Implement volume-based discounting schemes rather than individual lot-size–based discounting schemes.
• Eliminate or reduce trade promotions and encourage EDLP. Base trade promotions on sell-through rather than sell-in to the retailer.
Related Book For
Managing Operations Across the Supply Chain
ISBN: 978-0078024030
2nd edition
Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley
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