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    Why has industry historically produced in large lots?

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    Why has industry historically produced in large lots?

    a. marketing prefers large lots, and marketing is generally powerful
    b. Interest is a dominant component of carry cost, which makes large lots economical
    c. Setup time has been typically considered as a given, not easy to change
    d. Industry has had a preference for fewer models, and therefore larger quantities per year and larger lots per order make sense.

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    D) Industry has had a preference for fewer models, and ...

    Solution Summary

    Why has industry historically produced in larger lots are determined. The interest in dominant components of carrying costs are determined.

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