A Just-In-Time Environment Has Smaller Inventories Than the Traditional Manufacturing

question 97

Multiple Choice

A just-in-time environment has smaller inventories than the traditional manufacturing environment.As a result,

• A)larger production lot sizes are the rule,in order to realize the cost-effectiveness of long production runs.
• B)the amount of working capital required for inventory typically increases.
• C)the just-in-time environment experiences a lower inventory turnover than the traditional environment.
• D)the just-in-time environment typically experiences a higher inventory turnover than the traditional environment.

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Definitions:

Productive Inputs

Resources used in the production of goods and services, including labor, capital, and raw materials.

Outward Shift

A movement of the supply or demand curve to the right, indicating an increase in supply or demand.

Resources Efficiently

The effective and optimal usage of resources to maximize productivity and minimize waste.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to undertake an action.