In a Lean Environment,process Problems Are More Visible Than They

question 90

Multiple Choice

In a lean environment,process problems are more visible than they are in a traditional environment because:

• A) inventories are maintained at higher levels.
• B) process problems cause production to shut down immediately.
• C) the push manufacturing system leads to increased inventory level.
• D) the lack of work in process inventory creates problems.

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Definitions:

Internal Rate

The rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Payback Period

The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates.

Investment

Allocation of capital or resources to assets with the expectation of generating profit or income.

Required Rate

The minimum acceptable return on an investment deemed necessary by an investor or business.