Question: 2. What are Jonah's three measures for evaluating the performance of Alexs plant and what are his definitions for each (Chapters 8 and 10)? How

2. What are Jonah's three measures for evaluating the performance of Alexs plant and what are his definitions for each (Chapters 8 and 10)? How do his definitions of the terms that he uses for those measures differ from the traditional business definitions of them? Explain your answers.

Jonah's three measurements included: reducing inventory and operational expense while also increasing throughput at the same time. Inventory is the money spent on products which will sell once ready. Throughput is making money through sales. Lastly, operational expense is the money that a company spends on the production of the product.

These terms are defined in a manufacturer setting where there are warehouses with inventory, products from throughput being shipped out to be sold, and with factories/plants where operations to make or assemble the product occur. In a traditional business setting, such as a retail store, the inventory or goods are typically already made, the throughput would be the sale of the product such as a shirt, and the operational expenses would include the labor of sales people.

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