Which of the Following Statements About Just-In-Time Inventory Management Policy

question 11

Multiple Choice

Which of the following statements about just-in-time inventory management policy is NOT true?

• A) It calls for the exact day-by-day, or even hour-by-hour raw material needs to be delivered by the suppliers.
• B) If the supplier fails to make the needed deliveries, then production shuts down.
• C) A big disadvantage in this system is that there are high raw inventory costs.
• D) It eliminates obsolescence or loss to theft.

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Definitions:

Labor Force

The total number of people who are eligible and actively looking for work, including both the employed and unemployed individuals.

Discouraged Workers

Individuals who are not actively seeking employment due to believing that no jobs are available for them or there are none for which they would qualify.

Unemployment Insurance

A government-provided benefit offering temporary financial assistance to workers who have lost their jobs through no fault of their own.

Deflation

A decrease in the general price level of goods and services in an economy over a period, leading to increased purchasing power of the currency.