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Consider a Manufacturer That Uses the Economic Production Lot Size

Question 18

Multiple Choice

Consider a manufacturer that uses the economic production lot size (ELS) model.What must the relationship be between production rate and demand rate for the producer to spend double the time in the production and demand portion of the inventory cycle as they spend in the demand only portion of the inventory cycle?


A) p = 1.5d
B) p = d
C) 2p = d
D) p = 2d

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