Which statement best describes a company that uses the just-in-time inventory system?
A) It uses a two-bin inventory system.
B) It attempts to earn speculative profits on inventory.
C) It cuts inventory to the minimum.
D) It calculates the economic order quantity for each type of item.

Question

Quizplus · Accepted Answer

The just-in-time inventory system is designed to cut inventory levels to the minimum required for production, in order to reduce costs and increase efficiency. This means that choice C, "It cuts inventory to the minimum," best describes a company that uses the just-in-time inventory system. Choices A, B, and D do not accurately describe this system.

Which Statement Best Describes a Company That Uses the Just-In-Time