Imagine Comparing a Manufacturing Operation Using Regular Lot-Sizing and the Same

question 44

Multiple Choice

Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a Kanban/lean production approach.What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each?

• A)Inventory holding cost will increase non-linearly with inventory
• B)Total costs will be lower for the regular lot-size operation
• C)Total costs will be lower for the Kanban/lean production operation
• D)The order quantity will be larger for the Kanban/lean production approach
• E)As long as the total quantity is the same, total costs will be the same

---

Definitions:

Biweekly Deductions

Regular expenses or amounts taken from a paycheck or budget every two weeks.

Head of Household

A tax filing status for an unmarried individual who pays more than half the cost of maintaining a home for themselves and a qualifying person.

Married Taxpayers

Individuals who are legally married and may choose to file income tax returns jointly or separately.

Dependents

Individuals, typically family members, who rely on another person, usually the primary earner, for financial support.