Lean Systems Maintain Inventory in Small Lot Sizes Because Small

question 9

Multiple Choice

Lean systems maintain inventory in small lot sizes because small lot sizes:

• A) increase pipeline inventory, allowing the organization to buffer against demand uncertainties.
• B) increase the quality level of the product.
• C) enable schedules to use machine capacities more efficiently.
• D) increase manufacturing lead time because of the increase in waiting time.

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Definitions:

Domestic Quantity

The total amount of a goods or services produced and consumed within a country's borders.

Trade

The exchange of goods, services, or both between parties, usually on the basis of comparative advantage.

Absence of Trade

A situation or condition in which there is no exchange of goods or services between people or entities.

Autarky

is an economic system or policy of self-sufficiency where a country does not engage in international trade, relying instead on its own resources.