Which statement is true concerning just-in-time inventory systems?

Question

Quizplus · Accepted Answer

Just-in-time systems keep inventory to a minimum by carefully planning and coordinating with suppliers to ensure that materials and products are delivered exactly when needed. This helps to reduce inventory costs and improve efficiency. Option A is incorrect because just-in-time systems aim to minimize defective units by improving processes and quality control rather than dealing only with defective units. Option B is incorrect because just-in-time systems may involve working with a few key suppliers rather than many. Option D is incorrect because just-in-time systems can work for both small and large companies, although larger companies may face more challenges in coordinating with multiple suppliers and managing a larger volume of materials and products.

Which Statement Is True Concerning Just-In-Time Inventory Systems