The JIT Philosophy Inherently Attempts to Reduce Lead Times for Order

question 37

Multiple Choice

The JIT philosophy inherently attempts to reduce lead times for order completions. Under traditional purchasing practices, the lead time is made up of all the following components with one exception. Which one is the exception?

• A) paperwork lead time
• B) manufacturing time for supplier
• C) transportation lead time
• D) time spent on unpacking and storing
• E) time spent on receiving and inspection

Recognize the concept of opportunity cost and its importance in managerial decision-making.

Understand the concept of relevant costs in decision-making processes.

Analyze make-or-buy decisions by identifying and calculating relevant costs.

Understand and apply the target costing approach to product pricing.

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Definitions:

Process And Production

The methods and activities involved in transforming raw materials into finished goods, emphasizing efficiency and quality.

Theory X

A management concept that assumes employees are inherently lazy and will avoid work if they can, necessitating a controlling management style.

Gullible

Easily deceived or tricked because of being too trusting.

Production-Centered Management

A management approach focusing primarily on the output and productivity of workers, often at the expense of employee satisfaction or creativity.