With the Cost of Warehouse Space and Maintaining Inventory Increasing

question 15

Multiple Choice

With the cost of warehouse space and maintaining inventory increasing, Randall has decided to change the operation of his company to a "just-in-time" (JIT) mode, whereby manufacturing is initiated only upon customer order and only in very small lots, minimizing the company's warehouse and inventory costs. However, Randall is nervous about the change because he knows that JIT offers costs savings only when the costs of storing product are greater than the costs of

• A) rework.
• B) TQM.
• C) frequent delivery.
• D) small batches.
• E) large batches.

---

Definitions:

Storytelling Method

A technique used in communications to convey messages or information through narrative, making the content more engaging and memorable.

Business Communications

The sharing of information between people within and outside of an organization for the purpose of commercial benefit.

Advantages

Benefits or favorable factors that contribute to success or the achievement of goals.

Haptic Technologies

Technologies that create an experience of touch by applying forces, vibrations, or motions to the user, often used in virtual reality and gaming interfaces.