In the Long Run

question 76

Multiple Choice

In the long run,

• A)inputs that were fixed in the short run remain fixed.
• B)inputs that were fixed in the short run become variable.
• C)inputs that were variable in the short run become fixed.
• D)variable inputs are rarely used.

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Definitions:

TPS

Toyota Production System, a highly influential production philosophy focused on eliminating waste, improving productivity, and achieving efficiency in manufacturing.

Kanban Size

Refers to the capacity or limit set for a kanban, a tool in lean manufacturing and just-in-time production, which signals when more materials or work is needed.

Setup Cost

A fixed cost incurred each time a production process or activity is initiated, which includes costs associated with preparing equipment and facilities for manufacturing.

Carrying Cost

The expenses associated with storing and maintaining inventory, including warehousing, insurance, and spoilage costs.