Which of the following best describes just-in-time inventory management?
A)Inventory is maintained as a buffer to meet uncertainties in demand,supply,and movements of goods.
B)Production inefficiencies arising when production capacity stands idle for lack of materials are minimized by holding a small stock of essentials at all times.
C)A firm acquires inventory precisely when needed so that its inventory balance is always at,or close to,zero.
D)A firm minimizes the time lags present in the supply chain by maintaining a certain amount of inventory to use in these lag times.
E)A firm acquires inventory only once customers have placed orders for their product.

Question

Quizplus · Accepted Answer

Just-in-time inventory management involves acquiring inventory precisely when it's needed so that inventory levels are always at, or close to, zero. This approach helps minimize the costs associated with holding inventory, such as storage and obsolescence, while also reducing the risk of overproduction or underproduction. Just-in-time inventory management is often used in production environments where materials are needed at specific times, and it requires close coordination between suppliers and customers to ensure timely delivery.

Which of the Following Best Describes Just-In-Time Inventory Management