Aaron attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Aaron take as he institutes this change?
A) Increase safety stock
B) Raise the reorder point
C) Reduce customer service standard
D) Increase order frequency
E) Reduce estimates of inventory turnover rate

Question

Quizplus · Accepted Answer

Just-in-time (JIT) inventory management focuses on reducing inventory levels and increasing efficiency by ordering goods only as they are needed. Increasing order frequency (D) is a key step in implementing JIT, as it allows for smaller, more frequent orders that align with immediate production needs, reducing the need for large inventories.

Aaron Attends a Seminar on Just-In-Time Inventory Management