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Jeff's Pizzeria Can Handle 30 Orders During the Day

question 27

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Jeff's Pizzeria can handle 30 orders during the day. It wanted to increase this number, so it started making its delivery boys do minor chores in the kitchen when they were not out for delivery and made some of the chefs pick up customers' calls. This doubled the number of orders Jeff's Pizzeria could handle. This approach is an example of _____.


Definitions:

Just-in-time

A production strategy that aims to reduce in-process inventory and associated carrying costs by producing goods only as they are needed in the production process.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and spoilage costs.

Shortage Costs

Costs incurred by a business when the demand for its products exceeds its supply, often leading to lost sales and customer dissatisfaction.

Short-term Financial Policy

Guidelines or strategies focused on managing a company's current assets and liabilities to ensure short-term operational needs are met.

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