Asked by Ericka Harris on Jul 08, 2024
Verified
Lower average inventory is feasible only if setup times are short.
Average Inventory
The average amount of stock held by a company over a specified period, calculated to understand inventory levels and manage them efficiently.
Setup Times
The duration required to prepare equipment, machines, or systems for production or operation, including adjustments for new tasks or products.
- Comprehend the role of inventory and setup times in achieving lower average inventory.
Verified Answer
LC
Lidia CurteanJul 12, 2024
Final Answer :
True
Explanation :
Short setup times allow for more frequent production runs and quick changeovers, which in turn reduces the need for maintaining high levels of inventory. This leads to a lower average inventory level.
Learning Objectives
- Comprehend the role of inventory and setup times in achieving lower average inventory.