The 'Just-In-Time' System of Inventory Control Can Be Best Explained

question 26

Multiple Choice

The 'just-in-time' system of inventory control can be best explained as the:

• A)coordination of production processes so that raw materials and components are delivered to the location where they are needed at precisely the times they are required.
• B)coordination of production processes so that raw materials and components are delivered to the location where they are needed.
• C)process of minimising total inventory costs.
• D)method in which the supplier effectively passes on the cost of inventory storage to the buyer.

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Definitions:

Accountants

Professionals who manage and examine financial records for individuals, companies, or organizations.

Economists

Professionals who study the production, distribution, and consumption of goods and services, analyzing how economies work and how economic agents interact.

Opportunity Costs

Represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Explicit Costs

Direct, out-of-pocket payments for inputs or resources used in the production of goods or services, such as wages for labor, rent for offices, or materials for production.