Which is not a benefit of small lot sizes?Multiple ChoiceReduced inventoryProblems are more apparentMore frequent setupsIncreased production flexibility

Break Down the Problem

1. Identify the benefits typically associated with small lot sizes.
2. Analyze each option to determine which one does not fit as a benefit.

Relevant Concepts

• Small lot sizes are often associated with reduced inventory costs, clearer visibility of problems in production, the need for more frequent setups, and adaptability to changes, which can imply increased production flexibility.

Analysis and Detail

1. Reduced Inventory: Small lot sizes generally mean lower levels of inventory, leading to reduced holding costs and less risk of obsolescence.
2. Problems are more apparent: A smaller quantity of items allows for quicker identification of issues, making problems easier to spot and address.
3. More frequent setups: Small lot sizes require more frequent changes to setup for different products, which can be seen as a drawback rather than a benefit.
4. Increased production flexibility: Smaller lots can often adapt more quickly to changes in demand or product types, allowing for more flexibility.

Verify and Summarize

Among the provided options, "More frequent setups" is not a benefit of small lot sizes, as it can be seen as a disadvantage due to the increased downtime and labor costs associated with frequent transitions between products.

Final Answer

More frequent setups is not a benefit of small lot sizes.