Take the following as truth: In order to make this decision for a SKU with a given level of demand variation, this firm's managers should weigh the increased unit costs arising from manufacturing smaller lots against the benefits this might create in shortening production lead times, which would reduce the amount of inventory the firm must hold for that product.
Then the following statement: "The precise level of demand variation warranting this analysis depends on the particulars of the SKU." is true, false, or inconclusive?
Answer: False