The JIT approach to inventory management
A)allows greater flexibility as to when products can be manufactured.
B)results in higher inventory levels but reduces ordering and setup costs.
C)results in lower inventory carrying costs.
D)none of these.

Question

Quizplus · Accepted Answer

The JIT (Just In Time) approach to inventory management aims to minimize inventory carrying costs by ordering and producing only what is needed when it is needed, which results in lower inventory levels. This approach also allows greater flexibility as to when products can be manufactured since they are produced only in response to actual customer demand. However, it may result in higher ordering and setup costs.

The JIT Approach to Inventory Management