Which of the following outcomes is the most likely effect of that decision on the company’s on time delivery performance?

A company that has consistently achieved a high level of on-time delivery performance has decided to reduce its inventory level significantly.

Which of the following outcomes is the most likely effect of that decision on the company’s on time delivery performance?
A . There will be no effect.
B. It will decline and then stabilize at a lower level.
C. It will improve and then stabilize at a higher level.
D. It will decline until sales erode.

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Answer: B