Which of the Following Statements Is True Regarding the Lean

question 13

Multiple Choice

Which of the following statements is true regarding the lean production and just-in-time (JIT) manufacturing systems?

• A) Customers are often less satisfied with the purchased product.
• B) The number of product defects often increases.
• C) The number of suppliers the company can purchase raw materials from, often increases.
• D) The factory is often restructured where dissimilar machines are grouped together.

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Definitions:

Competitive Increasing-cost Industry

An industry in which the entry of new firms causes the prices of inputs to increase, affecting the cost of production for all firms.

Long-run Equilibrium

A state in which all factors of production and inputs can be varied, allowing for full adjustment by firms and the economy, and no excess demand or supply exists.

Decline in Demand

A decrease in the willingness and ability of consumers to buy goods and services at existing prices, which can lead to lower market prices.

Constant-cost Industry

An industry in which the costs of production, including inputs and labor, do not change as the overall industry output changes.