To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.
A) just-in-time (JIT)
B) level loading
C) stock-outs
D) logistics management
E) enterprise resource planning (ERP)

Question

Quizplus · Accepted Answer

The system described is just-in-time (JIT), which is focused on reducing inventory holding costs by ordering and receiving items just in time for production or sale. This allows for a small inventory holding period, and reduces the risk of overstocking and excess stock remaining unsold.

To Reduce Inventory Management Costs, Many Companies Use a System