It Is True That Just-In-Time (JIT) Processing

question 16

Multiple Choice

It is true that Just-in-time (JIT) processing:

• A) runs the risk of interruptions in supply.
• B) is only suitable for large businesses.
• C) reflects a 'push' approach to manufacturing.
• D) sounds good in theory but doesn't work in practice.

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Definitions:

Substitute

A good or service that can be used in place of another good or service, typically because it serves a similar function or satisfies the same needs.

Demand Equation

A mathematical representation of the demand curve, expressing the relationship between the quantity demanded and various factors that influence it, such as price.

Marginal Utility

The supplementary enjoyment or value someone gains from consuming one more unit of a certain good or service.

Utility Maximization

The process by which individuals select the combination of goods and services that maximizes their level of satisfaction, given their budget constraint.