Use the Following to Answer the Questions Below

Multiple Choice

Use the following to answer the questions below.
Shipments of Product A from a distribution center to a retailer are made in lots of 350.The retailer's average demand for A is 75 units per week.Lead time from distributor to retailer is 3 weeks.The retailer pays for the shipments when they leave the distributor.The distributor has agreed to reduce the lead time to 2 weeks if the retailer will purchase quantities of 400 per shipment instead of 350.
-Refer to the instruction above.With the change in purchased quantities,the average cycle inventory will:

A) decrease by 75 units.
B) increase by 50 units.
C) decrease by 25 units.
D) increase by 25 units.