A Just-In-Time (JIT)inventory System Attempts to Reduce Inventory Levels to the Absolute

question 71

Multiple Choice

A just-in-time (JIT) inventory system attempts to reduce inventory levels to the absolute minimum by:

• A) purchasing and accepting inventory before it is sold to a customer.
• B) delaying the shipment of the completed product to the customer.
• C) keeping safety stock in case the estimate exceeds the demand.
• D) assembling the product in the absolute minimum time possible.

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Definitions:

Specialization

The process of focusing efforts and resources on a narrowly defined area of expertise or activity, often resulting in increased efficiency and quality.

Market Concentration

The degree to which a small number of firms control the majority of market share in an industry.

Focused Marketing

A strategic approach where marketing efforts are intensely directed at a specific market segment or demographic, tailoring products and advertising to appeal to that group.

Institutional Markets

Markets where transactions occur between institutions such as businesses, governments, and non-profits, rather than between a business and individual consumer.