Answer the Following Questions Pertaining to Just-In-Time Inventory Management

question 25

Essay

Answer the following questions pertaining to just-in-time inventory management:
a. What are key elements of the JIT philosophy?
b. What elements of the JIT approach contribute to reducing materials inventory?
c. Why do proponents of JIT believe inventory is an enemy?

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Definitions:

Specific Risk

A type of risk that affects a very small number of assets, such as a single stock or sector, also known as unsystematic or idiosyncratic risk.

Beta

In finance, it's a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. In statistics, it refers to the second type of error in a hypothesis test.

Regression Models

Statistical models used to estimate the relationship between a dependent variable and one or more independent variables.

Extrapolated

The process of estimating beyond the original observation range by assuming that existing trends continue.