Under a just-in-time inventory system,a company can reduce the amount of working capital it needs to finance inventory,freeing capital for other uses and/or lowering the total capital requirements of the enterprise.

Question

Quizplus · Accepted Answer

A just-in-time inventory system allows companies to reduce the amount of inventory they need to hold, which in turn reduces the amount of working capital needed to finance that inventory. This frees up capital for other uses or lowers the total capital requirements of the enterprise. Therefore, the statement is true.

Under a Just-In-Time Inventory System,a Company Can Reduce the Amount