One of the traditional reasons for holding inventory is to take advantage of quantity discounts and hedge against future price increases. The JIT solution is to
A)reduce setup costs.
B)reduce lead time.
C)use long-term contracts with suppliers.
D)use total quality control.

Question

Quizplus · Accepted Answer

Long-term contracts with suppliers can help mitigate the need for holding inventory for the purpose of taking advantage of quantity discounts and hedging against future price increases, as they can secure stable pricing and supply over time.

One of the Traditional Reasons for Holding Inventory Is to Take