1. Since inventory is required to conduct business, inventory is never considered as a waste of resources in a lean production system.

A. True

B. False

2. A key aspect to a lean production system is for a worker to specialize in one task and do it well.

A.True

B. False

3. Lean systems place a priority on all the following activities except

a. Reduce processing times

b. Adding inspection stations

c. Reducing setup times

d. Match production to demand

e. Minimize movement

4. In order to avoid the bullwhip effect, how should pricing policies be structured with relation to demand

a. To facilitate steady demand

b. To charge what the market will bear

c. Pricing is not a cause of the bullwhip effect

d. To lag demand

e. So demand will react rapidly to changes