Which of the Following Is Characteristic of the Lean System

question 74

Multiple Choice

Which of the following is characteristic of the lean system?

• A) Fewer work in process account transactions.
• B) Work in process and raw materials accounts combined.
• C) Elimination of the direct labor account.
• D) All of the above.

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Definitions:

Multi-Echelon

Multi-Echelon describes a supply chain model that involves multiple levels of inventory storage and distribution points, from manufacturers to end-users, to optimize inventory levels and delivery times.

Replenishment Orders

Orders placed to restock inventory to a desired level, ensuring the availability of products for continued sales or production.

Cycle Inventory

The portion of inventory that is planned to be sold in a given cycle, as part of the regular pattern of ordering and selling goods.

Forward Buying

Purchasing inventory in larger quantities than immediately needed, often in anticipation of price increases or high demand periods.