Explain How Electronic Data Interchange (EDI) and Just-In-Time (JIT) Inventory

question 265

Essay

Explain how electronic data interchange (EDI) and just-in-time (JIT) inventory management might be used in combination to improve physical distribution effectiveness and efficiency.

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Definitions:

Operating

Relating to the day-to-day business activities involved in running a company, such as selling, managing, and producing goods or services.

Peripheral Activities

Operations or tasks that are not central to the main business or objectives of an organization, but may still generate revenue or provide support.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Retained Earnings

The portion of net income left over after dividends have been distributed to shareholders, reinvested into the company.