With Drum-Buffer-Rope (DBR),the Bottleneck Resource Is Always the Buffer

question 60

True/False

With drum-buffer-rope (DBR),the bottleneck resource is always the buffer.

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Definitions:

Break-even Quantity

The number of units that need to be sold for a business to cover its production costs, resulting in zero profit or loss.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent or salaries, remaining constant regardless of business activity.

Marginal Costs

The cost added by producing one additional unit of a product or service.

Net Present Value

A calculation used to assess the value of future cash flows in today's dollars, considering the time value of money.