What of the following best describes just-in-time inventory management?
A)A firm minimises the time lags present in the supply chain by maintaining a certain amount of inventory to use in these lag times.
B)Inventory is maintained as a buffer to meet uncertainties in demand, supply, and movements of goods.
C)Production inefficiencies arising when production capacity stands idle for lack of materials are minimised by holding a small stock of essentials at all times.
D)A firm acquires inventory precisely when needed so that its inventory balance is always at, or close to, zero.

Question

Quizplus · Accepted Answer

Just-in-time inventory management is a system in which a firm acquires inventory precisely when needed so that its inventory balance is always at, or close to, zero. This approach reduces the cost of holding inventory and minimizes the risk of waste and obsolescence. It is designed to eliminate waste and improve efficiency in production processes by ensuring that all necessary materials are available at the right time without interruption.

What of the Following Best Describes Just-In-Time Inventory Management