A just-in-time inventory system allows a firm to:
A) extend credit to new customers.
B) provide sufficient inventory for most contingencies.
C) reduce their investment in inventory.
D) reduce capital expenditures.

Question

Quizplus · Accepted Answer

A just-in-time inventory system is designed to minimize the amount of inventory a firm holds at any given time. This system allows a firm to reduce their investment in inventory by ordering only what is necessary to meet current demand. By minimizing inventory, a firm can reduce the costs associated with storage, handling, and insurance.

A Just-In-Time Inventory System Allows a Firm To