A demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line is referred to as ________.
A) just-in-time production
B) materials requirements planning
C) relevant total costs
D) economic order quantity

Question

Quizplus · Accepted Answer

Just-in-time production is a method of production in which each component in a production line is produced immediately as needed by the next step in the production line. This system is demand-pull, meaning that production only occurs when there is demand for a product, which reduces waste and inventory costs. Materials requirements planning, relevant total costs, and economic order quantity are not specifically related to demand-pull systems in which components are produced immediately as needed.

A Demand-Pull System in Which Each Component in a Production