Joe's Pizza Shop Only Makes Pizza

question 2

Multiple Choice

Joe's Pizza Shop only makes pizza. If each pizza requires five people, each of whom specializes in one task, this method of production is an example of

• A) economies of scope.
• B) team production.
• C) economies of monitoring.
• D) economies of coordination.

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Definitions:

Kanban Systems

A workflow management method for defining, managing, and improving services that deliver knowledge work, using visual cues to trigger actions.

Low-Volume Parts

Components or items that are produced or needed in small quantities, often for specialized or custom applications.

External Failure Costs

Expenses incurred when products or services fail to meet quality standards after being delivered to the customer, including warranties and returns.

Warranty Costs

Expenses incurred due to fulfilling warranty claims, including repairs, replacements, and service costs associated with guaranteeing the product's performance.