What makes JIT superior to the traditional approach of inventory management?
A) The traditional approach accepts the existence of setup costs,but not carrying costs or inventories.JIT accepts the existence of setup and carrying costs,but pushes for zero inventories.
B) The traditional approach accepts the existence of carrying costs and inventories,but not setup costs.JIT accepts the existence of setup costs but not carrying costs and pushes for zero inventories.
C) The traditional approach accepts the existence of both setup costs and carrying costs and attempts to find the order quantity that best balances those costs.JIT does not accept either setup costs or carrying costs and pushes for zero inventory levels.
D) The traditional approach does not accept carrying costs or setup costs.JIT minimizes both setup and carrying costs by finding the best order quantity to balance these costs.
Correct Answer:
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Q42: One of the traditional reasons for holding
Q43: How are finished goods inventories treated with
Q44: Which of the following is a common
Q45: How does JIT prevent shutdowns due to
Q46: One of the traditional reasons for holding
Q48: How is JIT purchasing done?
A)using short-term contracts
Q49: What is the term for a marker
Q50: What does a withdrawal Kanban specify?
A)how much
Q51: The following information is available for
Q52: One of the traditional reasons for holding
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