Just-In-Time (JIT)inventory Systems

question 56

Multiple Choice

Just-in-time (JIT) inventory systems

• A)result in a greater number of suppliers for each production process.
• B)focus on a "push" type of production system.
• C)can only be used with automated production processes.
• D)result in inventories being either greatly reduced or eliminated.

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Definitions:

Two-part Tariff

A pricing strategy that involves charging an initial fee (fixed charge) plus a per-unit price for consumption beyond a certain threshold.

Marginal Cost

The boost in total expenditure linked with producing an extra unit of a good or service.

Profit-maximizing

Aimed at achieving the highest possible profits through adjusting production levels, pricing strategies, and cost management.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.