Which of the Following Statements About Concurrent Manufacturing Is FALSE

question 44

Multiple Choice

Which of the following statements about concurrent manufacturing is FALSE?

• A) Concurrent manufacturing means that the supplier can keep inventory costs down
• B) In concurrent manufacturing, suppliers schedule their own manufacturing based on the shipment needs of their customers
• C) JIT and concurrent manufacturing can only be used by suppliers of component parts
• D) An important technological development that enabled many firms to use JIT was EDI
• E) In order for suppliers to reduce their costs, they are turning to concurrent manufacturing

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.

Equilibrium Quantity

The amount of goods or services that are bought and sold at the equilibrium price, where market demand meets market supply.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and able to spend on a good or service and what they ultimately pay.