Having attended a management seminar,the owner of a small manufacturing firm is considering using a just-in-time inventory system.Which of the following may be a source of difficulty?
A) a lack of clout in dealing with suppliers
B) the absence of a retail inventory valuation method
C) allocating freed up inventory space
D) the small variety of products that are manufactured

Question

Quizplus · Accepted Answer

Implementing a just-in-time inventory system requires suppliers to deliver materials and goods in a timely and efficient manner. If the firm does not have a strong relationship with its suppliers or lacks the bargaining power to negotiate favorable terms, it may encounter difficulties in implementing the system.

Having Attended a Management Seminar,the Owner of a Small Manufacturing