Which of the Following Is the Best Definition of a Just-In-Time

question 341

Multiple Choice

Which of the following is the best definition of a just-in-time inventory (JIT) .

• A) The gap between the interest rate a bank pays on deposits and the rate it charges on loans.
• B) Statistical technique for distinguishing between two samples on the basis of their observed characteristics.
• C) Design for inventory in which parts, raw materials, and other work-in-process are delivered exactly as needed for production. Goal is to minimize inventory.
• D) Bill for goods or services provided by the seller to the purchaser.
• E) The process of quantifying the probability of default when granting consumer credit.

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Definitions:

Throughput Time

The elapsed time from when production is started until finished goods are shipped.

Factory Floor

The operational area within a manufacturing plant where goods are actually produced, typically housing machinery, assembly lines, and workers.

Warehouse

A facility for storing goods, merchandise, and materials before they are distributed for sale or use.

Quality Costs

Expenses related to ensuring products or services meet company and customer quality standards, including prevention, appraisal, and failure costs.