The Analogy of Rocks in a River Is Often Used

question 9

Short Answer

The analogy of rocks in a river is often used when discussing Lean principles. In the analogy, the rocks represent ________ while the water represents ________.

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Definitions:

Surplus

The situation where the quantity of a good or service supplied exceeds the quantity demanded, often causing downward pressure on price.

Shortage

Situation in which the quantity demanded exceeds the quantity supplied.

Extraction Costs

The expenses associated with the removal of raw materials from the earth, such as labor, energy, and equipment costs.

Rare Earth Metals

Rare earth metals are a group of seventeen elements used in the manufacture of a variety of advanced technological devices, characterized by their scarcity and unique electronic properties.