Question

Large lots are desirable in supply chain coordination despite increasing holding costs.

Answer 1

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Here we will get on the topic of large laws that are desirable in the supply chain coordination despite increasing holding.

well, it is definitely true that holding cost is much higher in the case of large clots in the supply chain as a comparison to small lots in the supply chain. Large lots in the supply chain hold their own benefits which can be proved as an advantage in the supplied in coordination in the future. When the products are made in large lots, or when the products are made in large quantities or bulk, the cost of making those products automatically decreases. This is called cost reduction, cost reduction is very beneficial for any organization.

Large lots are also desirable in supply chain coordination because they are very helpful in the quick supply of the products to the consumers without any delay and obstacle. Unlike the small lots, they do not delay the supply of products to the customer, which also leads to a better relationship between customers and the owner. It is true that large lots have more holding cost but everything gets covered when the revenue is received after the supply of large lots to the customers or the wholesaler or retailers.