Which One of the Following Statements Represents an Advantage of the P

question 205

Multiple Choice

Which one of the following statements represents an advantage of the P system over the Q system?

• A) Less safety stock is carried to achieve the same service level.
• B) The replenishment intervals can be more easily individualized for items.
• C) Orders can be more easily combined to the same supplier.
• D) A P system is more suitable for quantity discounts and capacity limitations.

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Definitions:

Straight Piecework

An incentive plan under which employees receive a certain rate for each unit produced.

Unit Produced

A measure of output that quantifies the total amount of goods or services produced by an individual, team, or organization within a given timeframe.

Piecework

A payment model where workers are compensated based on the amount of work completed, instead of receiving a fixed hourly wage.

Technology Changes

The advancements and innovations in technology that affect how industries operate and deliver products and services.