In a just-in-time (JIT) inventory system,
A) firms rely on usage rate formulas in ordering decisions.
B) ordering costs are minimized.
C) the economic order quantity (EOQ) is used in ordering.
D) firms order frequently and in lower quantities.

Question

Quizplus · Accepted Answer

In a JIT inventory system, firms aim to reduce inventory holding costs by ordering smaller quantities more frequently, aligning closely with production schedules and demand.

In a Just-In-Time (JIT) Inventory System