A Just-In-Time Environment Has Smaller Inventories Than the Traditional Manufacturing

question 97

Multiple Choice

A just-in-time environment has smaller inventories than the traditional manufacturing environment.As a result,

• A)larger production lot sizes are the rule,in order to realize the cost-effectiveness of long production runs.
• B)the amount of working capital required for inventory typically increases.
• C)the just-in-time environment experiences a lower inventory turnover than the traditional environment.
• D)the just-in-time environment typically experiences a higher inventory turnover than the traditional environment.

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Definitions:

Spreading Alternatives

The act of diversifying choices or options in decision-making or behavior.

Free Choice Paradigm

A laboratory situation in which people make a choice between two alternatives, and after they do, attraction to the alternatives is assessed.

Dissonance Reduction

Involves efforts or strategies to alleviate the discomfort caused by holding two or more conflicting cognitions, such as beliefs, attitudes, or behaviors.

Cognitive Dissonance

A psychological phenomenon involving discomfort felt by an individual when they hold conflicting beliefs, ideas, or values at the same time.