A Disadvantage of a JIT System Is ____________

question 67

Multiple Choice

A disadvantage of a JIT system is ____________.

• A) an increases inventory turnover
• B) a reduction in inventory holding costs
• C) a reduction of the cost of capital tied up in inventory
• D) reduction in warehousing costs
• E) it leaves no buffer stock of inventory

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Definitions:

Budget Line

A graphical depiction of all possible combinations of goods a consumer can afford with a given budget, at fixed prices.

Slope

The measure of the steepness or incline of a line, reflecting the rate of change from one point on the line to another.

Maximizing Utility

The economic principle that individuals seek to obtain the highest level of satisfaction or benefit from their consumption choices.

Irrational Choice

Making decisions that go against or do not align with the rational decision-making model, often leading to less optimal or desirable outcomes.