One of the Simplest Ways to Reduce Random Variation Is

question 56

True/False

One of the simplest ways to reduce random variation is to smooth the time series via moving averages and exponential smoothing.

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Definitions:

Just-In-Time Manufacturing

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, producing goods only as needed.

Days' Sales

A financial metric that calculates the average time it takes for a company to turn its accounts receivable into cash.

Raw Materials Inventory

Items and components stored for future use in the production process, not yet modified or incorporated into a finished product.

Cost of Goods Manufactured

The total production cost of goods that have been completed over a specific period, including labor, materials, and overhead.