When Comparing the Traditional Approach of Inventory Management to JIT

question 115

Multiple Choice

When comparing the traditional approach of inventory management to JIT, which of the following statements is true?

• A)The traditional approach accepts the existence of setup costs, but not carrying costs or inventories. JIT accepts the existence of setup and carrying costs, but pushes for zero inventories.
• B)The traditional approach accepts the existence of carrying costs and inventories, but not setup costs. JIT accepts the existence of setup costs but not carrying costs and pushes for zero inventories.
• C)The traditional approach accepts the existence of both setup costs and carrying costs and attempts to find the order quantity that best balances those costs. JIT does not accept either setup costs or carrying costs and pushes for zero inventory levels.
• D)The traditional approach does not accept carrying costs or setup costs. JIT minimizes both setup and carrying costs by finding the best order quantity to balance these costs.

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Definitions:

Suggestibility

The quality of being inclined to accept and act on the suggestions of others, often studied in the context of memory and eye-witness testimony.

Transience

The state or quality of being transient, specifically referring to the tendency of memories to become less accessible over time.

Recognition

Recognition in psychology refers to the ability to identify previously encountered events, objects, or people, which is one aspect of memory.

Decay

The process of gradual deterioration or the breakdown of organic matter, structures, or functions over time.