The Just-In-Time (JIT) Approach to Inventory Management

question 96

Multiple Choice

The just-in-time (JIT) approach to inventory management

• A)allows greater flexibility as to when products can be manufactured.
• B)results in higher inventory levels but reduces ordering and setup costs.
• C)results in lower inventory carrying costs.
• D)None of the above are correct.

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Definitions:

Waiting Times

The period a customer or item spends waiting in queue or for a service to begin.

Service

A non-tangible offering that involves the provision of labor or expertise rather than a physical product.

Minimax Regret Strategy

Minimax Regret Strategy is a decision-making approach that aims to minimize the maximum possible regret from choosing an unfavorable option, considering the worst-case scenario.

Conservative Strategy

A risk management strategy that opts for investments or decisions that are expected to yield lower variability and risk.