Which one of the following statement is wrong?

- A lot or batch size is the quantity that a stage of the supply chain either produces or purchases at a given time.

- The inventory profile is a plot depicting the level of inventory over time.

- Lot sizes and cycle inventory do not affect the flow time of material within the supply chain.

- Cycle inventory exists in a supply chain because different stages exploit economies of scale to lower total cost.

- A key to reducing cycle inventory is the reduction of lot size.