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

question 64

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 nonlinearly 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.

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Definitions:

Chorionic Villus Sampling

A prenatal test in which a sample of chorionic villi is taken from the placenta for genetic testing, helping to detect birth defects and genetic diseases early in pregnancy.

Fetal

Pertaining to a fetus, the developmental stage of a human being between embryonic state and birth.

Germinal

The early stage of embryonic development immediately following fertilization, characterized by rapid cell division.

Embryonic

Pertaining to the embryo, an early stage of development in multicellular organisms after fertilization but before becoming a fetus.