JIT Suppliers Have Concerns That the JIT Firm's Demands for Small

question 39

True/False

JIT suppliers have concerns that the JIT firm's demands for small lot sizes are simply a way of transferring holding cost from the JIT firm to the suppliers.

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market price.

Normal Good

A normal good is a type of good for which demand increases as the income of individuals increases.

Equilibrium Price

The rate at which the product's supply equals its demand in the market.

Equilibrium Quantity

At the prevailing market price, the supply of goods or services is exactly the same as the demand for them.