The Element of Lean Involving Firms Working with Buyers and Customers

question 19

Multiple Choice

The element of lean involving firms working with buyers and customers with the mutual goal of eliminating waste,improving speed,and improving quality is referred to as:

• A) Waste reduction
• B) Lean supply chain relationships
• C) Lean layouts
• D) Continuous improvement

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Definitions:

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs, among others.

Order Quantity

The amount of stock or goods a company purchases or plans to purchase in a single order.

Operating Cycle

The amount of time it takes for a business to buy inventory, sell that inventory, and collect cash from the sale.

Cash Cycles

The duration it takes for a business to convert its investments in inventory and other resources back into cash flows from sales.