Which of the Following Is a Risk That Would More

question 29

Multiple Choice

Which of the following is a risk that would more likely be seen in a lean production and just-in-time manufacturing environment than in a traditional production environment?

• A) Reduced customer satisfaction due to higher product defects
• B) Reduced raw material supply bringing the production process to a halt
• C) Increased inventory storage costs
• D) Increased production time resulting in lost sales

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Definitions:

Saving

The portion of income not spent on consumption but kept aside for future use, often in a deposit account or as an investment.

Classical Dichotomy

The conceptual distinction between real and nominal variables within the economy, implying that alterations in the money supply solely impact nominal variables.

Nominal Variables

Variables measured in monetary terms that have not been adjusted for inflation, representing current prices.

Real Variables

Economic variables measured in physical units, reflecting quantities and qualities, rather than their monetary value, often adjusted for inflation.