The Just-In-Time (JIT) System Is A(n)

question 56

Multiple Choice

The just-in-time (JIT) system is a(n) :

• A) management system of people and procedures to fulfill all delivery deadlines.
• B) production system of small-lot manufacturing to reduce work-in-process inventory.
• C) materials management system for removing all inventories.
• D) integrated system of managing resources, information, and decision processes to eliminate waste.

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Definitions:

Diseconomies of Scale

The condition in which a company's costs per unit increase as it produces more units, typically due to inefficiencies that arise with increased size or output.

Diminishing Marginal Returns

A principle stating that as additional units of a variable input are added to a fixed input, the additions to output will eventually decrease.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Total Cost

The aggregate of expenses related to the manufacturing of products or provision of services, which includes costs that stay the same as well as those that vary.