By Utilizing a JIT Inventory System,__________ Maintains the Same Service

question 72

Multiple Choice

By utilizing a JIT inventory system,__________ maintains the same service level as its competitors,but at a one-fourth the inventory holding cost,which is their major source of cost savings.

• A)Wal-Mart
• B)GE
• C)Sears
• D)Dell
• E)Intel

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Definitions:

Internal Rate of Return

The discount rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.

Decision Rule

A guideline or criterion that aids in making choices between alternative courses of action.

Net Present Value (NPV)

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period, used for assessing profitability of investments.

Initial Cash Flow

The first inflow or outflow of cash for a project or investment, marking the start of its financial analysis.