Imagine Comparing a Manufacturing Operation Using Regular Lot-Sizing and the Same

question 44

Multiple Choice

Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a Kanban/lean production approach.What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each?

• A)Inventory holding cost will increase non-linearly with inventory
• B)Total costs will be lower for the regular lot-size operation
• C)Total costs will be lower for the Kanban/lean production operation
• D)The order quantity will be larger for the Kanban/lean production approach
• E)As long as the total quantity is the same, total costs will be the same

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Definitions:

Opportunistic Theft

A crime motivated by the chance to steal without premeditation, due to the immediate availability of unguarded property.

Kickbacks

Payments made in return for a favor or service, often illicitly and in breach of trust.

Shakedowns

Informally, the act of obtaining money, goods, or services through force, fraud, or threats, typically in a corrupt or illegal manner.

Traffic Fix

An ineffective or temporary solution to road traffic congestion and transportation challenges.