Question

A manager is concerned that there isn’t enough time spent on production and too much time spent on setups. The manager decides to double all production batch sizes. This change has no impact on demand. What impact will this likely have on the average inventory in the process?.

Answer 1

The impact would be that the average size of the inventory will increase.

If the manager has decided to double the production batch size then the average size of the inventory will also increase.

What is an inventory?

• In general terms an inventory refers to all the goods, items, products, which are a part of the business organization.
• For different industries the inventories have different meanings.
• Manufacturing industry: the inventory is not only the finished or the final product but also the raw materials are included.
• Service industry: the inventory of the service industry includes the steps involved in the sales of the product.
• Raw materials, finished goods, work that is in process etc.. all of this is inventory.
• Inventory is an important asset for all businesses and it is important to understand the meaning of it.

To learn more about inventory visit:  brainly.com/question/14179825?

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