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

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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 three 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 one week. What will be the effect on cycle and pipeline inventories?

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