Under the Just-In-Time Management System,________

question 27

Multiple Choice

Under the just-in-time management system,________.

• A)a company's storage costs increase
• B)a company's inventory insurance costs increase
• C)the floor space available for production increases
• D)the risk of the inventory becoming obsolete increases

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Definitions:

Recognized and Described

Acknowledged or identified and then explained or detailed in words.

Vendor/Supplier Managed

A situation in which the supplier takes responsibility for maintaining inventory levels and ordering supplies, typically based on previously agreed-upon guidelines with the purchaser.

Purchasing Cards

Specialized payment cards issued to employees to make procurement transactions more efficiently and to reduce processing costs.

Small Value Orders

Purchases or orders of relatively low monetary value, which might not warrant the same level of procurement scrutiny as larger expenditures.