Improvements in inventory control represent a positive technological change because they allow firms to produce the same output with fewer inputs.In recent years, many firms have adopted an inventory system in which firms accept shipments from suppliers as close as possible to the time they will be needed.Magna International has been a pioneer in using inventory control systems to adopt this in its stores.This type of inventory system is called a ________ inventory system.
A)first-in-first-out
B)cash-and-carry
C)just-in-time
D)buy-now-pay-later

Question

Quizplus · Accepted Answer

The type of inventory system described in the passage, where shipments are accepted from suppliers as close as possible to the time they will be needed, is known as a just-in-time (JIT) inventory system. Choice A (first-in-first-out) and choice B (cash-and-carry) do not accurately describe this type of inventory system, and choice D (buy-now-pay-later) is irrelevant to the discussion of inventory control systems.

Improvements in Inventory Control Represent a Positive Technological Change Because