One characteristic of a just-in-time (JIT) inventory system is that
A) a company is more likely to have excess unsold inventory to write off against earnings.
B) parts enter the manufacturing process immediately; they are not warehoused.
C) it is difficult to spot and fix defective inputs.
D) the working capital a company needs to finance inventory increases is high.
E) a firm has an ample buffer stock of inventory.

Question

Quizplus · Accepted Answer

In a JIT inventory system, parts are delivered and used in the manufacturing process immediately, minimizing the need for warehousing.

One Characteristic of a Just-In-Time (JIT) Inventory System Is That