An Advantage of a Just-In-Time Inventory System Is _________

question 54

Multiple Choice

An advantage of a just-in-time inventory system is _________.

• A)fewer managerial controls on inventory
• B)lower inventory holding costs
• C)larger shipment and production lots
• D)fewer orders per operational year
• E)more inspection and handling of materials

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Definitions:

Behavioral Economists

Specialists who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Present Consumption

The consumption of goods and services in the current period, as opposed to saving for future consumption.

Precommitments

Commitments made in advance to a specific course of action, often used as a strategy to restrain one's future actions.

Salary Smoothing

The practice of moderating the fluctuations in an employee's pay through methods that stabilize income, such as averaging earnings over time or providing benefits that reduce the impact of income variability.