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:

Raw Materials

The basic, unprocessed resources or inputs used in the production of goods and services.

Labour

The human workforce involved in productive work, especially physical work, in an economy or for a specific project or company.

Profit Margins

measure the difference between the cost of producing a product or service and its selling price, expressed as a percentage of the sales price.

Maximum Amounts

The highest permissible or possible quantities or levels of something.