Jim, an Efficiency Expert, Proposes the "Just-In-Time" Inventory Method to Roger

question 53

Multiple Choice

Jim, an efficiency expert, proposes the "just-in-time" inventory method to Roger, the CEO of Neptune Inc. If Roger is to accept the proposal, which of the following changes is he most likely to implement in Neptune Inc.?

• A)He is likely to avoid made-for-order method of manufacturing.
• B)He is likely to create a larger storage space for inventories.
• C)He is likely to introduce processes that support lean production.
• D)He is likely to manufacture mass products well ahead of demand.
• E)He is likely to stock a backup of supplies for emergency.

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Definitions:

Cournot Model

An economic model used to describe an industry structure in which firms compete on the quantity of output they will produce, which they decide on at the same time.

Cournot Equilibrium

A situation in oligopoly markets where each firm chooses the quantity to produce to maximize its profit, assuming the quantities of its rivals are fixed.

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a price change.

Cournot Equilibrium

A model of market competition in which firms choose their output levels simultaneously and independently to maximize profit with the assumption of no further entry by other firms.