All of the Following Are Benefits of Just-In-Time Inventory Ordering

question 51

Multiple Choice

All of the following are benefits of just-in-time inventory ordering systems except that JIT

• A) reduces warehouse space.
• B) saves utility and manpower costs.
• C) reduces inventory costs.
• D) prevents stock outs.

---

Definitions:

Equilibrium Price

Equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service.

Pumpkin Market

A theoretical or real market where pumpkins are bought and sold, often used to illustrate principles of supply and demand or seasonal markets.

Consumer Surplus

The gap between what consumers are ready to pay in total and what they end up actually paying.