Denise Works as a Quality-Control Inspector on the Assembly Line

question 16

Multiple Choice

Denise works as a quality-control inspector on the assembly line for Leprechaun Candies. One day, she encounters a problem: chocolates are rolling off the line with the wrappers inverted such that the company's logo is on the inside of the wrapper. Based on your knowledge of lean manufacturing, what should Denise do?

• A)She should do nothing, in keeping with lean manufacturing's emphasis on cost-cutting.
• B)She should stop the operation immediately and call for help.
• C)She should keep the line going because lean manufacturing demands efficiency.
• D)She should make a note of the issue and present it to her supervisor at the end of the day.
• E)She should continue working because she lacks the authority to do anything else.

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Definitions:

Opportunity Cost

The worth of the best option that was given up to make a choice.

Leisure

Free time when one is not working or occupied; time available for ease, relaxation, and activities one enjoys.

Substitution Effect

Changes in what consumers purchase, brought about by alterations in the relative costs of goods, persuading consumers to opt for alternatives over their usual choices.

Income Effect

The correlation between income changes in an economy or for individuals and their effect on the quantity of goods and services demanded.