Lead Times and Delivery Times Can Create Problems Also

Multiple Choice

Lead times and delivery times can create problems also. Longer times can _______________________. The extended lead time also might push back the date at which a firm is able to introduce new products to the market.

A) increase inventory and drive down carrying costs
B) increase inventory needs and drive up carrying costs
C) reduce inventory needs and drive up ordering costs
D) increase inventory needs and drive up ordering costs
E) expand inventory and drive up production costs