The Most Common Tactic to Arrange Departments in a Process-Oriented

question 289

True/False

The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs.

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Definitions:

Constraint Lines

Lines in a graph of a linear programming model representing limitations or restrictions on the resources available.

Contribution Margin

The amount of revenue from sales that exceeds the variable costs associated with producing a product or service.

Production Constraint

Limitations or restrictions in the production process that prevent a company from reaching its full production potential.

Cost-Benefit Trade-Off

The balance between the advantages and disadvantages (in terms of cost) of a decision or project, to evaluate its feasibility or value.