An inventory system that attempts to cut inventory carrying costs by reducing inventory to an absolute minimum is known as a(n) ____.
A) ABC inventory analysis
B) LIFO - last in-first out system
C) just-in-time inventory system
D) FIFO - first in-first out system

Question

Quizplus · Accepted Answer

Just-in-time inventory system (JIT) attempts to cut inventory carrying costs by reducing inventory to an absolute minimum. It is a system of inventory management where materials or products are only purchased or produced as needed in the production process. This helps to minimize waste and inventory carrying costs. ABC inventory analysis, LIFO (last in-first out) system, and FIFO (first in-first out) system are not directly related to reducing inventory carrying costs.

An Inventory System That Attempts to Cut Inventory Carrying Costs