Which of the Following Correctly Describes Just-In-Time (JIT)inventory Management

question 153

Multiple Choice

Which of the following correctly describes just-in-time (JIT) inventory management?

• A)It is a production approach that maintains surplus goods at each stage of manufacture.
• B)It is an inventory purchase approach that seeks purchase discounts on buying large quantities.
• C)It is a cost management approach that focuses on maintaining lean inventory levels.
• D)It is an inventory approach which stockpiles raw materials to protect against supply interruptions.

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Definitions:

Line of Credit Agreement

A legal agreement between a financial institution and a borrower that establishes a maximum loan balance that the lender allows the borrower to access.

Specified Period

A defined duration or timeframe during which certain actions, events, or conditions are intended to take place or be in effect.

Contractually Committed

A term indicating that parties are legally obliged to carry out the terms of a contract, including payments, deliveries, or services.

Blanket Lien

A lien that gives the lienor the entitlement to take possession of any or all of the lienee's real and personal property to satisfy a debt.