The order of inventories for production as they are needed is known as ________.
A)just-in-time production
B)production smoothing
C)work in process
D)stock out avoidance

Question

Quizplus · Accepted Answer

This order of inventories is called just-in-time production, where items are ordered and produced just in time to meet the immediate needs of the production process. This approach reduces waste and excess inventory, leading to cost savings and improved efficiency. Option B, Production smoothing, refers to the process of maintaining consistent production levels over time, while option C, Work-in-process, refers to partially completed items that are still in the production process. Option D, stock out avoidance, is simply the process of avoiding stock outages by ensuring that sufficient inventory is maintained to meet demand.

The Order of Inventories for Production as They Are Needed