A Scheduling System for Minimizing Inventory by Having Components Arrive

question 5

Multiple Choice

A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy.

• A) just-in-time
• B) frictionless
• C) bullwhip
• D) safety-stock

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Definitions:

Rate Variance

The difference between the actual rate paid for something and the standard or expected rate, often analyzed in budgeting and cost management.

Total Cost Variance

measures the difference between the actual cost of producing something and its standard cost, highlighting efficiency and budgeting issues.

Variable Factory Overhead

Costs in manufacturing that fluctuate with the level of production, such as utilities or materials.

Direct Materials

Raw materials that are directly incorporated into a finished product and can easily be traced to the product.