Six Sigma Qualities Goal Is to Detect Potential Problems to Prevent

question 18

True/False

Six sigma qualities goal is to detect potential problems to prevent their occurrence and produce no more than 3.4 defects per million opportunities.

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Definitions:

Reorder Point

The specific inventory level at which an order for more supply is initiated to replenish stock before it runs out.

Carrying Cost

The complete expense associated with maintaining stock, which encompasses costs for storage, management, decrease in value, and missed opportunities.

Order Costs

Expenses associated with placing orders for products or services, including costs involved in ordering and receiving goods.

Effective Annual Rate

The interest rate on an investment or loan that is adjusted for compounding over a specified period, often annually.