Which of the Following Is a Characteristic of Just-In-Time Inventory

question 245

Multiple Choice

Which of the following is a characteristic of just-in-time inventory management systems?

• A) Users determine the optimal level of safety stocks.
• B) They are applicable only to large organizations.
• C) They do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.
• D) They rely heavily on high quality materials.

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Definitions:

Monthly Payment

A specified amount of money paid at regular monthly intervals, typically associated with loans or installment purchases.

Quoted Interest Rate

The interest rate that a lender offers to a borrower for a loan, not accounting for compounding or additional fees.

Buy Down

The process of paying additional points to a lender at closing to reduce the interest rate on a loan.

Down Payment

An initial upfront partial payment for the purchase of expensive goods or services such as a home, often expressed as a percentage of the total purchase price.