True or false: In supply chain management, reduction of fixed cost may be achieved by aggregating lots across multiple products, customers, or suppliers.
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The question is asking whether the statement about achieving a reduction of fixed cost in supply chain management by aggregating lots across multiple products, customers, or suppliers is true or false.
Answer
True
The statement is true.
Answer for screen readers
The statement is true.
More Information
Reduction of fixed costs in supply chain management can be effectively achieved through aggregating lots, which allows for economies of scale and lowers the costs associated with management and logistics.
Tips
A common mistake is to confuse reduction in variable costs with fixed costs, as they are affected by different factors. Aggregation specifically targets fixed costs.
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