An Engine Production Facility Uses a System That Involves the Entire

question 117

Multiple Choice

An engine production facility uses a system that involves the entire organisation and utilises a single set of facts used by all of the managers within the facility.The system is an example of

• A) a just-in-time inventory system.
• B) materials requirement planning.
• C) manufacturing resource planning.
• D) enterprise resource planning.
• E) an inventory control system.

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Definitions:

Deadweight Loss

Deadweight loss refers to the loss in economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.

Consumer Surplus

The gap in the total amount consumers are willing to invest in a product or service and the amount they end up paying.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, measuring their benefit.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefit to society from the production and consumption of a good or service.