Order costs are most similar to which of the following: A) Shrinkage costs B) Ca
ID: 460025 • Letter: O
Question
Order costs are most similar to which of the following:
A) Shrinkage costs
B) Carrying costs
C) Changeover costs
D) Stockout costs
E) None of the above
Which of the following statement is not true about kanban?
A) Kanban is Japanese for "visible record” or "signal."
B) Kanban system utilizes small buffers of inventory between work centers, departments, and manufacturing plants.
C) Kanban systems are used to link the production rate to the demand rate.
D) In Kanban, the demand pulls products through the system.
E) Kanban systems can only link work centers together that are physically adjacent to each other.
7. The rate of production the business was designed to accommodate on a long-term basis is referred to as:
A) Actual output
B) Effective capacity
C) Design capacity
D) Protective capacity
E) Overloading capacity
8. Protective capacity
A) Tends to be in short supply because it is often viewed as an investment in resources that aren't providing a financial return.
B) Appears to be an effective use of resources because it is used all the time.
C) Provides a short-term financial return through its impact on various time-related value attributes.
D) Must be accompanied by protective inventory.
Explanation / Answer
5. Correct answer is option E i.e None of the above
6. Correct answer is option E i.e Kanban system can only link work centers together that are physically adjacent to each other
7. Correct answer is option C i.e Design capacity
8. Correct answer is option A i.e Tends to be in short supply because it is often viewed as an investment in resources that are not providing a financial return
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