In a traditional inventory system,
A)inventory is accumulated in large amounts.
B)inventory is ordered just in time to be put into production.
C)the marketing manager determines how much inventory should be in stock.
D)the cost of carrying inventory is no more than with a JIT system.

Question

Quizplus · Accepted Answer

In a traditional inventory system, inventory is accumulated in large amounts to ensure that there is enough stock to meet demand. This results in higher inventory carrying costs and the risk of overstocking, leading to wastage and obsolescence.

In a Traditional Inventory System