One of the Advantages of a Just-In-Time Inventory System Is

question 26

Multiple Choice

One of the advantages of a just-in-time inventory system is that it reduces inventory quantities.Why is this considered to be a benefit?

• A)Carrying inventory incurs storage costs, hence reducing inventory quantities reduces costs.
• B)Carrying large inventory raises the risk that customers will want an item that you do not have.
• C)Carrying large inventory reduces the risk that customers will want an item that you do not have.
• D)none of the above

---

Definitions:

Labor Employment

The process or state of engaging individuals in work or activities that require the use of their skills and labor in return for payment.

Productivity

The measure of the efficiency of production, often expressed as the ratio of output to inputs used in the production process.

Labor Force

The total number of people who are able and willing to work, either employed or actively seeking employment.

Technology

The use of scientific understanding for pragmatic objectives, particularly within the industrial sector.