How Can a Company Benefit Through a Just-In-Time Logistics System

question 53

Essay

How can a company benefit through a just-in-time logistics system?

Compute the rate of return on investment (ROI).

Calculate the acid test ratio.

Compute the ratio of accounts receivable to net sales.

Determine inventory levels and average inventory.

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Definitions:

Internal Processes

The procedures and activities conducted within an organization to ensure effective operation and fulfillment of the organization's goals.

Productivity

Productivity refers to the efficiency of production of goods or services, often measured by the output per unit of input.

MRP II

Manufacturing Resource Planning, an integrated method of operational and financial planning for manufacturing companies, expanding on Material Requirements Planning (MRP).

MRP

Material Requirements Planning, a system for calculating the materials and components needed to manufacture a product.