The Formula for Return on Investment Is Calculated As: a =

question 5

Multiple Choice

The formula for Return on Investment is calculated as: A = operations costs for a new or enhanced system for the time period B = one-time cost of acquisition and implementation C = value if gains from productivity improvements for the time period

• A) Return on Investment = A / (B + C)
• B) Return on Investment = (A + C) / B
• C) Return on Investment = (A + B) / C
• D) Return on Investment = C / (A + B)

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Definitions:

Setup Times

The duration required to prepare or configure equipment or processes before the commencement of production or service delivery.

Batch Sizes

Refers to the quantity of items produced or processed at one time, affecting manufacturing efficiency and cost.

Within-Batch Wait Time

The time that elapses within a batch processing environment from when a job or process starts until it is completed, related to production and efficiency.

Lean Environment

A systematic approach to identifying and eliminating waste through continuous improvement, emphasizing value creation for the customer.