When a company adopts a just-in-time inventory system,it would expect:
A)higher inventories and less frequent purchases.
B)higher inventories and more frequent purchases.
C)lower inventories and less frequent purchases.
D)lower inventories and more frequent purchases.
E)lower inventories and more units purchased on a given order.

Question

Quizplus · Accepted Answer

A just-in-time inventory system aims to minimize inventory levels and increase the frequency of purchases to reduce holding costs and increase flexibility. Therefore, the company adopting this system would expect to have lower inventories and more frequent purchases.

When a Company Adopts a Just-In-Time Inventory System,it Would Expect