Which of the Following Is an Advantage of Producing at Average

question 8

Multiple Choice

Which of the following is an advantage of producing at average demand levels?

• A) inventory fluctuates
• B) allows for a lower investment in capacity
• C) minimizes space needs for inventory
• D) minimizes finished good holding costs
• E) makes it difficult to calculate average production

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Definitions:

Alcoholic Fermentation

A biological process by which sugars such as glucose, fructose, and sucrose are converted by yeast or bacteria into cellular energy, producing ethanol and carbon dioxide as side products.

Acetaldehyde

A volatile, flammable, and colorless liquid compound, which is a common intermediate in the synthesis of various chemicals and a byproduct of alcohol metabolism.

NADH

Nicotinamide adenine dinucleotide (NADH) is a coenzyme found in all living cells, involved in redox reactions, carrying electrons from one reaction to another.

Ethanol

A volatile, flammable, colorless liquid alcohol widely used as a biofuel, in alcoholic beverages, and as a solvent in the pharmaceutical industry.