_____ the lead time, higher the quantity of material to be stored and higher is the amount of working capital requirement.

Constant

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Lower

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Higher

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None of the level

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Solution

The correct option is C Higher
Higher the lead time, higher the quantity of materials to be stored and higher is the amount of working capital requirement.
As current asset will increase with increase in lead time.
Meaning of lead time-the time between the initiation and completion of a production process.

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Similar questions

Higher working capital usually results in

(a) higher current ratio, higher risk and higher profits

(b) lower current ratio, higher risk and profits

(d) lower equity, lower risk and higher profits

Higher working capital usually results in:

(a) Higher current ratio, higher risk and higher profits

(b) Lower current ratio, higher risk and profits

(d) Lower equity, lower risk and higher profits

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