Under a Just-In-Time Manufacturing System, Large Quantities of Inventory Are

question 92

True/False

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that needed components are available each time that they are needed.

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Definitions:

Marginal Costs

The increase in cost resulting from the manufacture of one additional unit of a good or service.

Decreasing Costs

Situations in which costs diminish as the level of production or scale of operations increases.

Efficiency

The extent to which time, effort, or cost is well-used for the intended task or purpose.

Total Cost Function

An equation that represents the total cost incurred by a firm in the production of goods or services, as a function of output level.