To ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay,firms utilize sophisticated ________________.
A)Just-in-time (JIT) inventory control systems
B)Materials requirement planning (MRP)
C)Exclusive dealing
D)Exclusive territory
E)Tying contract

Question

Quizplus · Accepted Answer

To ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay, firms utilize sophisticated just-in-time (JIT) inventory control systems. A JIT system's goal is to balance the double-edge sword of potentially having too many goods on hand and creating unnecessary warehousing costs, with the chance of having so little inventory in stock that stock-outs occur requiring expensive rush production and express delivery situations.

To Ensure That Inventories of Both Raw Materials and Finished