JIT Is Often Mistakenly Assumed to

question 105

Multiple Choice

JIT is often mistakenly assumed to

• A) refer to the final assembly schedule only
• B) dictate the product standards specification
• C) refer to only just-in-time manufacturing
• D) be a core element of ISO 9000 requirements
• E) be driven by the finance department long range spending plan

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Definitions:

Setup Cost

Setup cost is the expense incurred to prepare equipment, machines, or systems for a manufacturing run or production operation.

Inventory Holding Cost

The total cost associated with storing unsold goods, including warehousing, depreciation, insurance, and opportunity costs.

EOQ Lot-Sizing

An inventory management approach that determines the optimal order quantity to minimize total inventory costs, including ordering and holding costs.

Lot-For-Lot

A production planning method where the exact quantity required for production or demand is ordered or produced, without excess.