Which of the Following Best Describes Just-In-Time Inventory Management

question 115

Multiple Choice

Which of the following best describes just-in-time inventory management?

• A)Inventory is maintained as a buffer to meet uncertainties in demand,supply,and movements of goods.
• B)Production inefficiencies arising when production capacity stands idle for lack of materials are minimized by holding a small stock of essentials at all times.
• C)A firm acquires inventory precisely when needed so that its inventory balance is always at,or close to,zero.
• D)A firm minimizes the time lags present in the supply chain by maintaining a certain amount of inventory to use in these lag times.
• E)A firm acquires inventory only once customers have placed orders for their product.

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Definitions:

Potential Cuts

Potential cuts refer to possible reductions or decreases, typically in budgets, expenditures, or workforce, being considered to align with financial goals or constraints.

Net Liquid Balance

The amount of cash available after accounting for all liquid assets and subtracting current liabilities.

Uncommitted Cash

Funds that are not currently locked into investments or obligations and are available for immediate use.

Involuntary Bankruptcy

A legal process initiated by creditors seeking to have a debtor's assets distributed to satisfy unpaid debts.