One of the Traditional Reasons for Holding Inventory Is to Minimize

question 78

Multiple Choice

One of the traditional reasons for holding inventory is to minimize total carrying costs and setup costs.What is the JIT solution meant to do?

• A)reduce setup costs
• B)reduce lead time
• C)use total preventive maintenance
• D)use total quality control

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Definitions:

Specialize

Focus on a specific area of expertise or production to achieve greater efficiency.

Production Possibilities

A curve representing all possible combinations of maximum outputs that could be produced with a fixed amount of resources.

Consumption Possibilities

The range of goods and services that can be consumed given a consumer's income and prices.

Physical Capital

Tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.