The use of standardized components typically leads to fewer inventory items and inventory levels

due to the following reasons:

Simplification of Inventory Management: Standardized components reduce the variety of parts

needed, simplifying inventory management.

Economies of Scale: Purchasing standardized components in larger quantities can reduce costs and

streamline procurement processes.

Reduced Stock Keeping Units (SKUs): Fewer unique components mean fewer SKUs to manage, which

simplifies tracking and storage.

Inventory Reduction: With standardized parts, companies can maintain lower safety stock levels due

to more predictable usage patterns.

Reference:

Bowersox,

D. J., Closs,

D. J., & Cooper,

M. B. (2013). Supply Chain Logistics Management. McGraw-

Hill.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.

Pearson.