A just-in-time inventory system:
I.when implemented properly reduces the cost of inventory to zero.
II.increases the inventory turnover rate.
III.is sufficient to handle immediate production needs.
IV.minimizes the costs of holding inventory.
A)I and III only
B)II and IV only
C)I, II, and IV only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

A just-in-time inventory system is designed to minimize the costs of holding inventory by reducing the amount of inventory on hand. This is achieved by implementing a system that ensures that inventory is delivered to the production line just in time to be used. As a result, the inventory turnover rate is increased and the cost of inventory is reduced.

A Just-In-Time Inventory System