In a traditional inventory system
A)Inventory is stockpiled in large amounts.
B)Inventory is ordered just in time to be put into production.
C)The marketing manager determines how much inventory should be in stock.
D)The cost of carrying inventory is no more than with a JIT system.

Question

Quizplus · Accepted Answer

In a traditional inventory system, inventory is stockpiled in large amounts to ensure that there is enough of a product to meet demand. This often leads to higher carrying costs for the company, as they must store and maintain larger amounts of inventory over a longer period of time.

In a Traditional Inventory System