Question detail
MetroMove serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?3,850, sales of 215 units, and a 33% change in costs or demand. Which option best applies Explain how just in time production can affect efficiency?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Production processes
Question
- A. Use efficiency, just in time to judge capacity utilisation, owners impact, and the business objective in Production efficiency.
- B. Give only a definition of Production processes without using the case evidence.
- C. Treat revenue and profit as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use efficiency, just in time to judge capacity utilisation, owners impact, and the business objective in Production efficiency.
Explanation
The option is correct because Use efficiency, just in time to judge capacity utilisation, owners impact, and the business objective in Production efficiency. The case evidence gives ?5,350, 215 units, and 33%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse revenue and profit, miss the owners, or ignore the business objective.
Common mistake
Production efficiency common mistake 1
Giving a vague answer instead of directly addressing: Explain how just in time production can affect efficiency..
Answer by clearly explaining how to explain how just in time production can affect efficiency..
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