Scenario Analysis Is Defined as The

question 11

Multiple Choice

Scenario analysis is defined as the:

• A) determination of the initial cash outlay required to implement a project.
• B) determination of changes in NPV estimates when what-if questions are posed.
• C) isolation of the effect that a single variable has on the NPV of a project.
• D) separation of a project's sunk costs from its opportunity costs.
• E) analysis of the effects that a project's terminal cash flows has on the project's NPV.

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Definitions:

Production Cycle

The series of steps involved in producing a good or service, from initial raw materials to the finished product.

Kanban

A visual scheduling system that controls the logistical chain from a production point of view, aiming to improve manufacturing efficiency by limiting work-in-progress items.

Safety Stock

Additional inventory kept on hand to guard against stockouts caused by uncertainties in demand and lead-time.

Kanbans

A scheduling system for lean manufacturing and just-in-time (JIT) production that signals the need to move materials within a production facility.