Reduced Cycle Time Is One of the Common Techniques of TQM

question 16

True/False

Reduced cycle time is one of the common techniques of TQM, and refers to the ability of TQM to shorten the time required to receive inventory after placing an order for it.

---

Definitions:

EOQ Model

Economic Order Quantity, an inventory management model that determines the optimal order quantity to minimize total inventory costs, including holding and ordering costs.

Safety Stock

A level of extra inventory maintained to mitigate the risk of stockouts caused by variations in supply and demand.

DSO

Days Sales Outstanding; a measure of the average number of days that a company takes to collect revenue after a sale has been made.

Aging Schedule

A table that displays the amounts of receivables from customers, broken down into categories based on the time elapsed since the invoice date.