When a Firm Adopts a Just-In-Time Operating Environment

question 37

Multiple Choice

When a firm adopts a just-in-time operating environment,

• A) new, more efficient machinery and equipment must be purchased and installed in the original layout.
• B) machinery and equipment are moved into small autonomous production lines called manufacturing cells.
• C) new machinery and equipment must be purchased from franchised JIT dealers.
• D) employees are retrained on different equipment but the plant layout generally stays unchanged.

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Definitions:

Decade

A period of ten years.

Effective Annual

Referring to an interest rate or return on investment that accounts for the effects of compounding over a year.

Rate of Sales Growth

The increase in sales over a specific period of time, typically measured as a percentage.

Per Month

A term indicating a frequency or rate that applies to each month.