Which of the Following Is the Major Benefit to a Firm

question 58

Multiple Choice

Which of the following is the major benefit to a firm of using just-in-time inventory management?

• A) minimizes the risk of stock-outs
• B) minimizes the total number of orders that the firm places
• C) reduces acquisition costs for placing goods in inventory
• D) largely eliminates the carrying costs of maintaining a large inventory

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Definitions:

Excess Supply

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, leading to surplus.

Sunglasses

Protective eyewear designed to prevent bright sunlight and high-energy visible light from damaging or discomforting the eyes.

Price

The amount of money expected, required, or given in exchange for something else; a fundamental economic concept that represents the value of a good or service.

Excess Demand

A situation in a market where the quantity demanded of a product exceeds the quantity supplied at a given price, leading to upward pressure on prices.