Explain What Factors Cause Changes in Output In: (1) the Short

question 59

Essay

Explain what factors cause changes in output in: (1) the short run; (2) the medium run; and (3) the long run.

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Definitions:

Lead Time

The time span between the initiation and completion of a process, such as the ordering of goods and their delivery.

Bill of Material

A comprehensive list detailing all the components, materials, and parts required to manufacture a product, including quantities and specifications.

Inventory

An accounting term referring to the goods and materials held by a business for the purpose of resale or production.

Lot-For-Lot

An ordering system where the exact quantity needed for production is ordered, minimizing inventory holding costs.