Just-in-time inventory (JIT) 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

JIT systems are designed to reduce inventory holding costs by having inventory arrive just in time for production or sale, rather than keeping excess inventory on hand.

Just-In-Time Inventory (JIT) Systems