Which of the Following Is TRUE About a Lean Production

question 114

Multiple Choice

Which of the following is TRUE about a lean production system?

• A) Customer orders drive the production process.
• B) Inventory levels are maintained at high levels.
• C) Raw materials are purchased in large quantities.
• D) Finished goods are produced ahead of customers' orders to protect against running out of finished goods inventory.

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Definitions:

Economies Of Scale

The cost advantage achieved by an increase in production, leading to a lower cost per unit.

Facilities

Physical locations or infrastructures where business operations occur, including offices, factories, and warehouses.

Distributors

Entities engaged in the business of distributing goods, typically bought from manufacturers, directly to retailers or customers.

Supply Chain

The entire process of making and selling commercial goods, including raw materials sourcing, manufacturing, distribution, and sales.