DKAT Motors, a car manufacturer, releases a new car that boasts of an affordable price tag of about $2,500. The firm is keeping costs down by eliminating large assembly line manufacturing sites and high transportation costs. Workers prepare "kits" that are shipped to final retail destinations. The kits are assembled by trained technicians at the retail level. This is an example of:

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The fact that DKAT Motors is keeping costs down by eliminating large assembly line manufacturing sites and high transportation costs indicates that they are practicing lean production. In lean production, companies aim to reduce waste throughout the manufacturing process, including transportation costs and excess inventory. By shipping kits directly to the final retail destinations and assembling them onsite, DKAT Motors is able to avoid excess inventory and reduce transportation costs, which helps them to keep the price of their car affordable.

DKAT Motors, a Car Manufacturer, Releases a New Car That