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Super Motors manufactures and sells a wide variety of motors to industrial customers. All motors cost about the same and are assembled on the same line. Switching over from assembling one motor to another requires about two hours. Super assembles motors to be stocked in a distribution center from where they are shipped as orders arrive. HP is the highest-selling motor (in terms of units sold) and LP the lowest selling. Which of the following statements about the average cycle inventory HP motors is TRUE?

A. Higher than the cycle inventory of LP motors.

B. Lower than the cycle inventory of LP motors.

C. Same as the cycle inventory of LP motors.

D. None of the above.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92034059

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