A Basic Requirement for Operating with the Low Inventories Present

question 80

Multiple Choice

A basic requirement for operating with the low inventories present in lean systems is

• A)Inventory space must be increased.
• B)Inventory investment must be increased.
• C)Major problems must be identified.
• D)Major problems must have been solved.
• E)Inventories must be reduced rapidly.

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Definitions:

Bound

To be legally or morally obligated; often referring to the commitments made in a contract or agreement.

Purchased

Purchased refers to the acquisition of goods or services in exchange for money or other consideration.

Ratifying Contract

The act of formally approving an agreement to make it valid and binding, often after the fact.

Accepting Benefits

The act of receiving advantages, possibly under a contract, and particularly in a manner that implies acknowledgment or endorsement.