One of the Advantages of a Just in Time Inventory

question 56

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.

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness.

Integration

The process of combining parts or elements to form a whole, often used in the context of systems, organizations, or diverse societies.

Acculturation

The process of adopting the cultural traits or social patterns of another group, often occurring in immigrant populations.

Computer Use

Refers to the operation and activity of using computers, including software applications and the internet, for various tasks.