Which of the Following Is True Regarding JIT Systems

question 31

Multiple Choice

Which of the following is true regarding JIT systems?

• A) JIT systems do not have backup inventory.
• B) JIT usually entails less frequent deliveries.
• C) JIT requires manufacturers to add new warehouses.
• D) JIT requires suppliers to respond to very short order lead times and the customer's production schedule.
• E) Manufacturers must locate their facilities next to important customers in order to practice JIT.

---

Definitions:

Full Income

The total earnings, including all sources of income and gains, not just wages from employment.

Dividend Income

Income received from owning shares of a company, typically paid out from the company's profits to shareholders at regular intervals.

Nonlabor Income

Income received from sources other than employment or the active exertion of effort, such as dividends, interest, or rental income.

Leisure

Time free from work or duties, which can be used for rest, recreation, or other personal activities.