The "just-in-time" concept of inventory management is best illustrated by:
A)A clothing manufacturer that sells all of its finished goods before they go out of style.
B)A defense contractor that completes its projects within the deadlines set by its customer (the federal government).
C)A pharmaceutical firm that consistently brings new products to market ahead of its competitors.
D)A homebuilder who has its suppliers deliver lumber and other building materials to the building site the night before these materials will be used by the company's construction crews.

Question

Quizplus · Accepted Answer

The "just-in-time" concept of inventory management means that items are purchased or delivered at the exact moment they are needed for production or sale. This minimizes inventory costs and reduces waste. Option D is the best choice as the homebuilder is receiving supplies the night before they will be used, which is an example of just-in-time inventory management. Options A, B, and C do not relate specifically to inventory management, and therefore, they are not the best choices.

The "Just-In-Time" Concept of Inventory Management Is Best Illustrated By