Which of the following represents a method of managing inventory designed to minimize a company's investment in inventories by scheduling materials to arrive at the time they are needed for production?
A)The economic order quantity (EOQ)
B)Material resource planning (MRP)
C)First-in, first-out (FIFO)
D)Just-in-time (JIT)

Question

Which of the following represents a method of managing inventory designed to minimize a company's investment in inventories by scheduling materials to arrive at the time they are needed for production?
A)The economic order quantity (EOQ)
B)Material resource planning (MRP) 
C)First-in, first-out (FIFO)
D)Just-in-time (JIT)

Quizplus · Accepted Answer

Just-in-time (JIT) is a method of managing inventory that involves scheduling materials to arrive just in time for production, minimizing the need for excess inventory and reducing storage costs. This method also helps to improve efficiency and reduce waste in the production process. Option A (EOQ) is a different inventory management approach that calculates the optimal order quantity based on factors such as carrying costs and order costs. Option B (MRP) is a system that helps companies plan and schedule production based on demand forecasts and inventory levels. Option C (FIFO) is a method of inventory valuation that assumes that the first items purchased are also the first items sold.

Which of the Following Represents a Method of Managing Inventory