Traditional manufacturing operations are based on the assumption that
A) Overproduction is disastrous
B) Nice guys finish last
C) It is better to anticipate future requirements and plan for them
D) If you manufacture it, demand will increase
E) Inventory has no value

Question

Quizplus · Accepted Answer

Traditional manufacturing operations rely heavily on planning and anticipating future requirements. This is because production processes are often lengthy and costly, so it is important to avoid unexpected delays or shortages of materials or resources. Overproduction can certainly be disastrous, but this is not the primary assumption underlying traditional manufacturing. Nice guys finishing last and the idea that demand will increase simply because something is manufactured are not core assumptions of traditional manufacturing either. While inventory does have a cost associated with it, it can also provide a cushion against unexpected demand or supply disruptions, so the assumption that "inventory has no value" is not accurate either.

Traditional Manufacturing Operations Are Based on the Assumption That