How Is JIT Purchasing Done

question 11

Multiple Choice

How is JIT purchasing done?

• A)using short-term contracts emphasizing price
• B)using long-term contracts based on quality,reliability,and price
• C)using short-term contracts based on quality,reliability,and price
• D)using inventory to hedge against stockouts and price increases

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Definitions:

Private Sector

The private sector encompasses businesses and entities that are not owned or operated by the government, operating primarily for profit.

Political Decision Making

The process by which public policies are formulated and decided upon by individuals and groups within governmental systems.

Free-Rider Problem

A situation in which individuals benefit from resources, goods, or services without paying for the cost of the benefit, leading to underprovision of those goods or services.

Local Government

A form of public administration which, in a majority of contexts, exists as the lowest tier of administration within a given state.