Which of the Following Statements Is True of Just-In-Time (JIT)

question 117

Multiple Choice

Which of the following statements is true of just-in-time (JIT) purchasing?

• A) In JIT purchasing, the optimal safety-stock level is the quantity of safety stock that minimizes the sum of annual relevant stockout and carrying costs.
• B) JIT purchasing is guided solely by the EOQ model because that model emphasizes the tradeoff between relevant carrying and ordering costs.
• C) In JIT purchasing, raw materials (or goods) are purchased so that products are delivered just as needed for production or sales.
• D) Only disadvantage of JIT purchasing is the higher level carrying and inspection costs.

Comprehend the significance of detailed lesson planning in training program success.

Identify criteria for participant selection in training programs.

Understand the influence of organizational culture on training decisions.

Acknowledge the flexibility required in organizing training content based on trainee needs and content nature.

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Definitions:

Price Inelastic

Characterizes a situation where the demand for a good or service does not significantly change with a change in its price.

Price Volatile

Refers to sudden and significant price changes within short periods, often seen in markets for commodities or securities.

Marketing Mix

The factors that a business can change in selling products to customers—product, place, price, and promotion.

Market Will Bear

Refers to the maximum price that consumers are willing to pay for a product or service in the market.