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Chapter 11 – Managing Economies of Scale in a Supply Chain Cycle InventoryAs an inventory quality manager at a major big box retailer, you have been tasked to reduce the lot size of products from a major supplier. a) Discuss which costs are expected to change. b)Your boss has tasked you to achieve the objective of lot size reduction without increasing cost. How will you achieve that?Discuss the impact of quantity discounts and trade promotions on lot size.Chapter 12 – Managing Uncertainty in a Supply Chain: Safety InventoryDescribe the impact of supply uncertainty and on safety inventory.Describe the concept of postponement. Will you change the variety of products you offer (as a firm) as you get better at postponement? How?

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