A just-in-time inventory system allows a firm to:
A)reduce capital expenditures.
B)reduce their investment in inventory.
C)extend credit to new customers.
D)provide sufficient inventory for most contingencies.

Question

Quizplus · Accepted Answer

A just-in-time inventory system reduces the investment in inventory by ordering and receiving inventory only when it is needed in the production process. This reduces the amount of capital tied up in inventory and can also reduce the costs associated with storing and managing inventory. Extending credit to new customers and providing sufficient inventory for contingencies are not directly related to a just-in-time inventory system.

A Just-In-Time Inventory System Allows a Firm To