In "Drum, Buffer, Rope," What Provides the Schedule, I

question 30

Multiple Choice

In "drum, buffer, rope," what provides the schedule, i.e. the pace of production?

• A) drum
• B) buffer
• C) rope
• D) drum, buffer, and rope combined
• E) both buffer and rope

---

Definitions:

Net Present Value

A financial metric that discounts all expected future cash flows to their present value to assess the viability or profitability of an investment.

Investment Cost

The total amount of money spent to acquire an investment, including all charges, fees, and acquisition expenses.

Discounted Payback Period

The time period required to recoup the cost of an investment considering the present value of future cash flows, providing a more accurate reflection of profitability.

Required Rate

is the minimum return that investors expect from an investment, taking into account the risk level compared to the risk-free rate of return.