In Lean Systems, Small Lot Sizes Are Required, Resulting in a Large

question 151

Short Answer

In lean systems, small lot sizes are required, resulting in a large number of setups, which means companies must significantly reduce _________ .

---

Definitions:

Domestic Price

The price of goods or services within a country's borders, as opposed to international or import/export prices.

World Price

The international market price of a good or service, influenced by global supply and demand.

Import

Bringing in merchandise or services from overseas with the intent to sell them within a country.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on by choosing one option over another.