One of the Traditional Reasons for Holding Inventory Is to Minimize

question 38

Multiple Choice

One of the traditional reasons for holding inventory is to minimize total carrying costs and setup costs. The JIT solution is to

• A)reduce setup costs.
• B)reduce lead time.
• C)use total preventive maintenance.
• D)use total quality control.

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Definitions:

Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Profits

Financial gains obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.

Farmer

An individual engaged in the practice of raising crops or livestock, typically for food or raw materials.

Profit-Maximizing

The process by which a firm determines the price and output level that returns the greatest profit.