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.

---

Definitions:

Isocost Line

Represents all combinations of inputs that cost the same amount for a firm, illustrating budget constraints in production theory.

Price of Capital

The cost of using capital assets in production, which can include interest rates on loans or opportunity costs of using owned capital.

Price of Labor

The wage or salary paid for the services of an employee or worker; essentially the cost of hiring labor.

Isocost Line

A line on a graph representing all combinations of inputs that have the same total cost.