A Company Maintains a Minimum of Inventory of Parts to Keep

question 87

Multiple Choice

A company maintains a minimum of inventory of parts to keep its production process going.If there is any interruption in the delivery of quality parts,production stops until quality is restored.This company is using:

• A) competitive benchmarking.
• B) acceptance sampling.
• C) just-in-time manufacturing.
• D) random variation.
• E) a quality circle.

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Definitions:

Rationing

The controlled distribution of scarce resources, goods, or services, often implemented during shortages to ensure fair and equitable access.

Consumer Goods

Products that are purchased for consumption by the average consumer, typically including items like food, clothing, and household products.

Unemployment

The condition of being jobless and actively seeking employment, often used as a key indicator of economic health.

Great Depression

A severe worldwide economic downturn that lasted from the late 1920s through the 1930s, leading to mass unemployment and economic hardship.