Just-In-Time Inventory Management (JIT) Is an Inventory Strategy That Focuses

question 5

Multiple Choice

Just-in-time inventory management (JIT) is an inventory strategy that focuses on

• A)performance measures.
• B)reducing waste and inefficiency.
• C)getting the right product to the right location at the right price.
• D)getting the product produced at any cost.

---

Definitions:

Accounts Receivable Turnover

A ratio that measures how effectively a company collects its receivables, calculated by dividing total net sales by the average accounts receivable.

Inventory Turnover Ratio

A metric indicating how often a company's inventory is sold and replaced over a specific period, useful in evaluating the efficiency of inventory management.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.