To Develop the Close Coordination Needed for Just-In-Time (JIT) Inventory

question 103

Multiple Choice

To develop the close coordination needed for just-in-time (JIT) inventory control systems, manufacturers tend to rely on one supplier. How is this supplier selected?

• A)by lowest item-by-item cost
• B)by its ability to be flexible
• C)by product quality
• D)by size of operation
• E)by lowest overall cost

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Definitions:

Subsidiaries

Companies that are owned or controlled by another company, known as the parent company, through a majority of the voting stock.

Domestic Firm

A company that operates primarily within the borders of its home country and is subject to its home country's jurisdiction and regulations.

Ownership Interest

Indicates an individual's or entity's legal rights and stakes in a company or property.

Consolidated Stockholders' Equity

The total equity in a conglomerate of all the shareholders combined, as if the conglomerate and its subsidiaries were a single entity.