What of the Following Best Describes Just-In-Time Inventory Management

question 44

Multiple Choice

What of the following best describes just-in-time inventory management?

• A)A firm minimises the time lags present in the supply chain by maintaining a certain amount of inventory to use in these lag times.
• B)Inventory is maintained as a buffer to meet uncertainties in demand, supply, and movements of goods.
• C)Production inefficiencies arising when production capacity stands idle for lack of materials are minimised by holding a small stock of essentials at all times.
• D)A firm acquires inventory precisely when needed so that its inventory balance is always at, or close to, zero.

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Definitions:

Centrality

Refers to the importance or influence of a certain node within a network, highlighting its role in facilitating or hindering the flow of information or resources.

Organizational Subunit

A division or smaller segment within an organization that focuses on specific tasks or goals.

Environmental Uncertainty

The degree of unpredictability and lack of information regarding changes in the external environment that affect an organization's operations.

Strategic Contingencies

Involves planning for and responding to events that could significantly impact an organization's ability to achieve its objectives.