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Henderson Air Practices the Principles of Lean Manufacturing, Including Setting

question 1

Multiple Choice

Henderson Air practices the principles of lean manufacturing, including setting up its production lines so they can easily and efficiently be switched to produce various product lines. Which strategy is this firm using to balance supply and demand?

Definitions:

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time.

Velocity of Money

The rate at which money circulates in the economy, calculated as the ratio of nominal GDP to the money supply, indicating the efficiency with which money is used to facilitate transactions.

Store of Value

An asset that can be saved, retrieved, and exchanged in the future without losing value.

Medium of Exchange

Any item that is widely accepted in exchange for goods and services, thus facilitating trade by eliminating the need for a double coincidence of wants.