1 A supplier makes monthly shipments to ‘House & Garden Stores’, in average lot sizes of 200 coffee tables.

The average demand for these items is 50 tables per week, and the lead time from the supplier is 3 weeks.

‘House & Garden Stores’ must pay for inventory from the moment the supplier ships the products. If they are willing to increase their lot size to 300 units, the supplier will offer a lead time of 1 week. What will be the effect on cycle and pipeline inventories?