JIT Systems Maintain Inventory in Small Lot Sizes Because Small

question 97

Multiple Choice

JIT systems maintain inventory in small lot sizes because small lot sizes

• A) increase pipeline inventory, allowing the organization to buffer against demand uncertainties.
• B) increase the quality level of the product.
• C) enable schedules to utilize machine capacities more efficiently.
• D) increase manufacturing lead time because of the increase in waiting time.

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Definitions:

GDP

The comprehensive market valuation of all final goods and services fabricated within a country's geographical boundaries in a set period defines Gross Domestic Product.

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, serving as a comprehensive measure of economic activity.

Net Domestic Product

A measure of a country's economic output that accounts for depreciation, representing the net value of all goods and services produced domestically.

Depreciation

The decrease in an asset's worth over time, usually caused by aging or becoming outdated.