In a Lean System When a Process Is Running Smoothly

question 2

Multiple Choice

In a lean system when a process is running smoothly:

• A)workers are underutilized.
• B)there is too little inventory in the system.
• C)there is too much inventory in the system.
• D)workers are overutilized.

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Definitions:

Total Cost

The sum of all expenses incurred by a business in the production of goods or services, including both fixed and variable costs.

Purely Competitive Conditions

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.

Wage Rate

The amount of compensation given to employees for their services per unit of time, which can be hourly, daily, or annually based.

Total Product

The total quantity of output produced by a firm or industry.