Which Statement Concerning the Just-In-Time Inventory Management System Is Not

question 8

Multiple Choice

Which statement concerning the just-in-time inventory management system is not true?

• A) The problem of holding inventory is shifted to the supplier.
• B) The aim of the system is to eliminate the need for the business to hold inventory.
• C) The approach is a theoretical one only and has not really been tried in practice.
• D) For the system to work, there must be a close relationship between the business and its supplier.

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Definitions:

Board of Trustees

A group of individuals vested with the responsibility to manage and oversee the operations and affairs of an institution or organization.

Group Polarisation

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often after group discussions.

Conformity

The act of aligning one's beliefs, attitudes, and behaviors with those of a group or societal norms.

Lowball Technique

A persuasion strategy by which an offer is initially made attractive, but less favorable terms are introduced after commitment is obtained.