How Does Pull-Through Production Help Minimize Inventories in a Just-In-Time

question 144

Multiple Choice

How does pull-through production help minimize inventories in a just-in-time operating environment?

• A)Products are made in anticipation of customer demand.
• B)Products are made only when customer orders are received.
• C)Products always goes through two or more processes.
• D)Products produced are always identical.

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Definitions:

Buyer

A person or organization that purchases goods or services.

Law Of Demand

The economic principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.

Quantity Demanded

The quantity demanded is the amount of a good or service that consumers are willing and able to purchase at a given price, holding all else constant.

Price

The amount of money required to purchase a good, service, or asset, often influenced by factors like supply and demand.