Just-in-time inventory systems:
A) are used only by manufacturing firms.
B) provide a buffer stock of inventory for a company.
C) are used to reduce inventory holding costs.
D) save costs by outsourcing inventory management to other companies.
E) always keep extra inventory on hand for emergencies.

Question

Quizplus · Accepted Answer

Just-in-time inventory systems are used to reduce inventory holding costs by ensuring that inventory is received and used only when needed for production or sales, minimizing the amount of excess inventory kept on hand. This strategy can help companies save money on storage, handling, and other inventory-related expenses. It can be used by both manufacturing and non-manufacturing firms.

Just-In-Time Inventory Systems