For a JIT Inventory System to Be Efficient,the

question 41

Multiple Choice

For a JIT inventory system to be efficient,the:

• A)inventory must have an independent demand.
• B)firm's suppliers need to be able to deliver goods quickly upon order.
• C)managers must limit production each day to a set quantity.
• D)firm must be a reseller of goods,not a manufacturer.
• E)supplying firm must be a subsidiary of the ordering firm.

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Definitions:

Failure To Maintain

A situation where the required level of upkeep, documentation, or regulatory compliance has not been sustained.

Machine Breakdowns

Occurrences when machinery fails or malfunctions, potentially halting production processes and incurring additional costs for repairs.

Sales Orders

Official written documents received by a company from a customer, indicating the type, quantity, and agreed prices for products or services.

Variable Factory Overhead Controllable Variance

The difference between the budgeted variable overhead based on actual production activities and the actual variable overhead incurred.