How Does a JIT System Respond to the Problems Traditionally

question 44

Multiple Choice

How does a JIT system respond to the problems traditionally solved by carrying inventories?

• A)by ensuring that sufficient inventory is on hand to prevent stockouts
• B)by purchasing extra materials when price discounts are offered
• C)by negotiating long-term contracts with supplier to lock in low prices
• D)by selecting an inventory level that minimizes the total of ordering and carrying costs

---

Definitions:

Positive

A term that can refer to a favorable outcome or condition, or in statistics, a correlation where two variables move in the same direction.

Marginal Product

The extra production yielded from the use of one additional unit of a specific input while keeping all other inputs unchanged.

Labor

Refers to human effort, both physical and mental, used in the production of goods and services.

Output

Output is the quantity of goods or services produced by a company, industry, or economy within a specified period.