Which One of the Following Statements Is TRUE Regarding JIT

question 7

Multiple Choice

Which one of the following statements is TRUE regarding JIT inventory?

• A) It exists just in case something goes wrong.
• B) It is the minimum inventory necessary to keep a perfect system running.
• C) It hides variability.
• D) It is minimized with large lot production.
• E) It increases if setup costs decrease.

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Definitions:

BAT Model

A framework for analyzing and understanding firms' strategic positions and potential competitive advantage.

Disbursements

The act of paying out or disbursing money, often related to the operational expenses of a business.

Interest Rate

The percent of principal charged by the lender for the use of its money or the return earned on an investment.

Net Float

The difference between checks written against a bank account and those that have been cleared, affecting the account's available balance.