Effective Just-In-Time Operation Requires

question 22

Multiple Choice

Effective just-in-time operation requires:

• A)short distances between suppliers and buyers.
• B)carrying only a small amount of safety stocks.
• C)the occasional delivery of large quantities of stock.
• D)all of the given options.

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Definitions:

Economic Profits

Profits exceeding the opportunity costs of the inputs used in the production process, an indicator of efficiency and effectiveness in resource utilization.

Mean Reversion

Suggests that performance eventually moves back toward the mean or average.

Demand And Supply Shocks

Unexpected events that cause sudden and significant changes in the demand or supply of goods and services in the economy.

Marginal Revenue

The increase in income resulting from the sale of one extra unit of a product or service.