A Disadvantage of a JIT System Is That It

question 56

Multiple Choice

A disadvantage of a JIT system is that it

• A)increases inventory turnover.
• B)reduces inventory holding costs.
• C)ties up much capital in inventory.
• D)leaves no buffer stock in inventory.

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Definitions:

Lawn-mowing

The act of cutting the grass of a lawn to maintain a specified height and neat appearance.

Variable Costs

Expenses that change in proportion to the activity or volume of goods or services produced.

Snow-clearing

Snow-clearing involves the removal of snow from roads, sidewalks, and other public areas to ensure safety and accessibility during winter conditions.

Perfectly Competitive

Refers to a market scenario where an unlimited number of buyers and sellers operate, and the single product offered is homogenous, making no single entity able to influence the market price.