A just-in-time strategy ______.
A)reduces investment in inventory and reduces space requirements
B)increases investment in inventory but reduces space requirements
C)increases investment in inventory increases space requirements
D)reduces investment in inventory but increases space requirements

Question

Quizplus · Accepted Answer

A just-in-time strategy aims to minimize the amount of inventory that must be stored, which leads to a reduction in investment in inventory and space requirements. By keeping the inventory levels low and only ordering goods as needed, companies can save money on storage costs and reduce the risk of inventory obsolescence. Therefore, option A is the correct choice.

A Just-In-Time Strategy ______