When comparing EOQ and JIT inventory systems, which of the following statements is false?
A) The EOQ approach takes the viewpoint that some inventory is necessary.
B) The EOQ system assumes a constant order quantity.
C) JIT argues that inventory investments should be minimized.
D) The EOQ system focuses on acquisition and holding costs.
E) JIT argues that safety stocks are necessary to reduce the probability of a stock shortage.

Question

Quizplus · Accepted Answer

JIT (Just-In-Time) inventory systems aim to minimize inventory levels, including safety stocks, by receiving goods only as they are needed in the production process, thereby reducing inventory costs and waste. This contrasts with the statement that JIT argues safety stocks are necessary, which is false.

When Comparing EOQ and JIT Inventory Systems, Which of the Following