Inventory Profile for question 1

a) The average inventory = 1000/2 = 500

Cycle time for a batch = 1250.
b) If we reduce the batch size to 500; then the average inventory would be 500/2 = 250 and the cycle time to
make a batch of 500 would be 1250/2 = 625
c) If we reduce the batch size to 250, then the average inventory would be 250/2 = 125 units and the cycle
time to make a batch of 250 would be 1250/4 = 312.5