Which of the Following Is NOT True Concerning Lean Systems

question 7

Multiple Choice

Which of the following is NOT true concerning lean systems and supply chain performance?

• A) Setup time reduction has minimal impact on the overall supply chain.
• B) Once lot sizes are reduced, inventory levels in the supply chain are also reduced.
• C) The presence of lean systems indicates stronger supply chain performance.
• D) Lean thinking has added to supply chain risk in some cases.

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Definitions:

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method over its useful life.

Useful Life

The expected time period over which an asset is useful to the owner.

Double-declining-balance

An accelerated method of depreciation which double the rate of normal depreciation, reducing the value of assets more quickly.

Depreciation Expense

The yearly allocation of the cost of an asset over its useful life, reflecting the asset's usage and wear and tear over time.