The Drawback of a Just-In-Time Inventory System Is That It

question 35

Multiple Choice

The drawback of a just-in-time inventory system is that it

• A) increases the total capital required by a firm.
• B) leaves a firm without a buffer stock of inventory.
• C) increases inventory holding costs, such as warehousing and storage costs.
• D) is less efficient than traditional system in spotting and fixing defective inputs.
• E) lowers a company's profitability as measured by return on capital invested.

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Definitions:

Epidemiologist

A scientist who studies the patterns, causes, and effects of health and disease conditions in defined populations.

Outbreak

An occurrence of a disease greater than would otherwise be expected at a particular time and place.

Survey

A method of gathering information from a sample of people, typically by asking questions, to understand opinions, behaviors, or characteristics of a larger population.

Smallpox

A highly contagious and deadly disease caused by the variola virus, which was eradicated globally in 1980 through vaccination efforts.