JIT [Reduces Inventory Costs, So It] Is Part of a _________

question 58

Multiple Choice

JIT [reduces inventory costs, so it] is part of a _________ strategy.[NOTE: the brackets can be removed if the students have been exposed to the concept. It is in Chapter 13.]

• A) Cost leadership
• B) Customer oriented
• C) Differentiation
• D) Innovation
• E) Operational effectiveness

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Definitions:

Comparative Advantage

is the ability of an entity to produce a good or service at a lower opportunity cost than others, leading to trade benefits.

Opportunity Cost

Overlooking potential advantages by settling on a single alternative.

Sandwiches

A food item typically consisting of two pieces of bread with meat, cheese, vegetables, or other fillings between them.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced using limited resources.