Which of the Following Is True of Flexible Factories

question 17

Multiple Choice

Which of the following is true of flexible factories?

• A) They use centralized scheduling, in which decisions are made on the shop floor.
• B) They move parts down the line from one location in the production sequence to the next.
• C) They are organized around products, in work cells or teams.
• D) They generate high volumes of a standardized product.
• E) They have long production runs.

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Definitions:

Returns to Scale

The rate at which output increases as inputs are increased proportionally.

Long-Run Average Total Cost

The average cost per unit of output when all input factors are variable, and economies of scale are fully exploited.

Production

The process of creating goods and services from various inputs like labor, knowledge, and raw materials.

U-Shape

A graphical representation describing a relationship or phenomenon that decreases, reaches a minimum point, and then increases, resembling the letter "U."