Many Companies Use Just-In-Time Inventory Methods

question 127

Multiple Choice

Many companies use just-in-time inventory methods.Which of the following is not an advantage of this method?

• A)It limits the risk of having obsolete items in inventory.
• B)Companies may not have quantities to meet customer demand.
• C)It lowers inventory levels and costs.
• D)Companies can respond to individual customer requests.

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Definitions:

Seasonal Drought

A period of below-average precipitation in a given region, resulting in prolonged shortages of water supply, often depending on the season.

Monsoon

Wind that reverses direction seasonally.

Chaparral

Biome of dry shrubland in regions with hot, dry summers and cool, rainy winters.

Fire-resistant

Materials or substances that are able to withstand fire or to resist burning.