Which of the Following Statements Regarding JIT in Services Is

question 118

Multiple Choice

Which of the following statements regarding JIT in services is true?

• A) Restaurants do not use JIT layouts because they interfere with creation of a good servicescape.
• B) Excess customer demand in services such as air travel is met by dipping into safety stocks.
• C) All of the JIT techniques for dealing with suppliers, layout, inventory, and scheduling are used in services.
• D) Scheduling is not relevant to effective use of JIT in services.
• E) All of the above are false.

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Definitions:

Rent-a-Wreck Industry

The business sector that specializes in renting out older, often pre-owned vehicles at reduced rates compared to standard rental services.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information, which leads to firms being price takers.

Perfectly Competitive Firm

A business that operates in a market where there are many buyers and sellers, all selling identical products, with no single entity being able to influence the market price.