Just-in-time inventory systems:

Question

Quizplus · Accepted Answer

Just-in-time inventory systems can reduce inventory costs substantially by allowing companies to receive inventory only when it is needed for production, rather than keeping excess inventory on hand. This can lead to cost savings in storage, handling, and other related expenses.

Note: Choices A, B, and E are incorrect. Just-in-time inventory systems can be useful in both manufacturing and channels of distribution, require supplier cooperation to function effectively, and can potentially reduce warehousing costs by allowing for smaller and more efficient storage spaces. Choice D is partially correct - the American automotive industry played a significant role in the development and popularization of just-in-time inventory systems, but they were also used in other industries and developed in Japan as well.

Just-In-Time Inventory Systems