A just-in-time inventory system:
A) eliminates all inventory costs.
B) reduces the inventory turnover rate.
C) averages long-term inventory needs.
D) focuses on immediate production needs.
E) maximizes inventory costs.

Question

Quizplus · Accepted Answer

A just-in-time inventory system focuses on meeting immediate production needs, and aims to only keep the necessary amount of inventory to fulfill orders without excess inventory. This helps reduce holding costs and improves efficiency in the production process. Therefore, option D is the correct choice. The other options are incorrect as they do not accurately describe the purpose or outcome of a just-in-time inventory system.

A Just-In-Time Inventory System