A Company That Uses a Just-In-Time Inventory System

question 123

Multiple Choice

A company that uses a just-in-time inventory system:

• A) has finished goods inventory on hand at all times in order to speed up shipments of customer orders.
• B) may find that having less inventory actually leads to increased customer satisfaction.
• C) assesses its value chain to create new value-added activities.
• D) adopts a systematic, problem-solving attitude.

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Definitions:

Amu

Atomic Mass Unit, a unit of mass used to express atomic and molecular weights, equivalent to one twelfth of the mass of a carbon-12 atom.

Valence Shells

The outermost shell of electrons in an atom, which determines how the atom interacts chemically with other atoms.

Electrical Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field, typically measured in coulombs.

Neutrons

Subatomic particles found in the nucleus of an atom, having no electric charge and a mass slightly greater than that of protons.