Under a more traditional system as opposed to a just-in-time inventory system, warehousing parts for weeks before they are used:
A) reduces the total working capital required by a firm.
B) allows many defective parts to be produced before a problem is recognized.
C) results in a near error-free production process.
D) reduces the costs related to inventory holding.
E) reduces the need to write off excess unsold inventory against earnings.
Correct Answer:
Verified
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