When Implementing a Lean System

question 50

Multiple Choice

When implementing a lean system:

• A) managers can mitigate some of the effects of worker stress by judiciously using safety stocks and emphasizing material flows rather than worker pace.
• B) management should base the reward system on production volume.
• C) the plant layout is the only environmental characteristic that need not be analyzed.
• D) it is critical to develop a master production schedule that changes frequently as forecasts change.

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Definitions:

Chen, Roll, and Ross

Refers to a model developed by the economists Stephen A. Ross, Randolph W. Roll, and Edwin H. Chen that enhances the capital asset pricing model by including factors related to macroeconomic risk.

Multifactor Models

Financial models that use multiple variables to explain or predict asset prices and returns, incorporating factors like size, value, and momentum.

Single-Factor Model

A financial model that describes the return on a security as dependent on a single factor, typically the market return, and the sensitivity of the security's return to this factor.

Economic Factors

Elements that influence the performance of economies, including inflation rates, interest rates, fiscal policy, and unemployment rates.