The Primary Advantage of a Just-In-Time Inventory System Is

question 71

Multiple Choice

The primary advantage of a just-in-time inventory system is:

• A)The amount of money tied up in inventory is minimized.
• B)Customers are afforded a wider selection of merchandise available for immediate delivery.
• C)The company is able to use the specific identification method of inventory pricing.
• D)The risks of losing sales opportunities or of having to shut down manufacturing operations because of inventory shortages are minimized.

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Definitions:

Pounds Of Force

A unit of force in the imperial system, symbolized as lbf, equivalent to the force exerted by gravity on a one-pound mass.

Norm Of Reciprocity

The social standard that suggests that a favor must be repaid.

Bargaining

A type of negotiation in which two or more parties attempt to reach an agreement on matters of mutual interest.

Buyers And Sellers

Participants in a market who exchange money for goods and services; buyers purchase while sellers offer.