A Manufacturer Took the Following Actions to Reduce Inventory

question 28

Multiple Choice

A manufacturer took the following actions to reduce inventory. Which of these is generally NOT accepted as a JIT action?

• A) It used a pull system to move inventory.
• B) It produced in ever smaller lots.
• C) It required deliveries directly to the point of use.
• D) It picked the supplier that offered the lowest price based on quantity discounts.
• E) It worked to reduce the company's in-transit inventory.

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Definitions:

Income Mobility

The ability of individuals or families to move up or down the economic ladder within a lifetime or from one generation to the next.

Income Ladder

A metaphorical representation of the distribution of income across individuals or households in a society, indicating levels of wealth or poverty.

Quintile

A statistical value that divides a group of data into five equal parts, each containing 20% of the population.

Transfer Payment

Payments made by governments to individuals without any goods or services being exchanged, such as social security benefits.