As the Production Manager for Toyota's Georgetown, Kentucky, Manufacturing Plant

question 55

Multiple Choice

As the production manager for Toyota's Georgetown, Kentucky, manufacturing plant, you're responsible for managing the inventory of all of the parts and components that go into every vehicle made there. It's a tough balancing act because you have to make sure your workers have what they need but you also have to minimize the costs associated with storing all of these unassembled components. Which of the following methods of inventory control do you think will work best for your needs?

• A) Keep as many components on hand as possible to ensure that workers always have an extensive selection of materials to work with
• B) Keep as many components on hand as you expect to use in the next month to ensure workers have what they need plus a little extra
• C) Keep as many components on hand as you expect to use in the immediate future to ensure workers have just as much as they need, and closely monitor the flow of incoming materials to replace what's used before you run out of anything
• D) Keep as few components on hand as possible, and only re-order components when the current inventory has been used

Understand the role of non-monetary rewards in labor supply decisions and job satisfaction.

Understand the impact of international trade on the demand for skilled versus unskilled labor.

Comprehend the concept of human capital and how it affects earnings.

Articulate the reasons for wage differences among different job types and industries.

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Definitions:

Perfectly Competitive

A market structure where many firms sell identical products, entry and exit are easy, and no single seller can influence the market price.

Market Price

The present cost for purchasing or selling an asset or service within a specific market.

Minimum-Cost Output

The level of production at which a firm can produce goods at the lowest possible average total cost.

Profit-Maximizing Quantity

The quantity of output at which a firm's profit is at its maximum, where marginal cost equals marginal revenue.