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

question 38

Multiple Choice

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

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

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Definitions:

Creditorship Claim

This term does not technically exist in precise financial terminology as presented; it's possibly a mistaken combination of terms relating to claims or rights held by creditors.

Ownership Claim

The legal right or interest that an owner possesses in property, assets, or a company, granting the power to control or dispose of it.

Debtor Claim

A demand for repayment from a debtor; may refer to the legal right to demand money owed.

Limited Liability

A legal structure that limits the personal financial responsibility of owners for the debts and actions of a business.