Which of the following is true of just-in-time (JIT)inventory management?
A)It results in more storage and insurance cost.
B)It is a system in which the company produces product only after receiving an order.
C)It promotes surplus inventory to prevent production shut-down in case of supply interruptions.
D)It requires a surplus inventory of finished goods to ensure timely, or just-in-time, delivery to customers.

Question

Quizplus · Accepted Answer

JIT inventory management is a system in which the company produces product only after receiving an order. This helps to reduce storage and insurance costs by reducing the amount of inventory that needs to be stored. JIT inventory management encourages lean production practices and the efficient use of resources to meet customer demand without the need for surplus inventory.

Which of the Following Is True of Just-In-Time (JIT)inventory Management