One of the five basic performance objectives is speed. Speed has a number of effects on the internal operation. It:
A) Increases inventories and reduces risk
B) Increases inventories and increases risk
C) Reduces inventories and increases risk
D) Reduces inventories and reduces risk

Question

Quizplus · Accepted Answer

Speed in operations typically reduces inventories because products or services are delivered faster, minimizing the need for large stockpiles. It also reduces risk by decreasing the time products spend in storage, thus lowering the chances of obsolescence or damage.

One of the Five Basic Performance Objectives Is Speed