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

Question

Quizplus · Accepted Answer

Just-in-time inventory management (JIT) involves acquiring inventory precisely when needed so that inventory balance is always at or close to zero. This approach reduces carrying costs associated with inventory, eliminates waste associated with obsolescence or spoilage, and minimizes the risk of inventory obsolescence. The aim is to produce goods just-in-time to fulfill customer demand, rather than in advance, which reduces lead times and transportation costs, enhances production efficiencies, and allows companies to be more responsive to changes in demand.

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