Companies have recently been able to reduce inventory levels because:
A)there is better sharing of information between suppliers and manufacturers
B)just-in-time production strategies are being implemented
C)production quotas are being implemented
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Both options A and B are correct. With better sharing of information between suppliers and manufacturers, companies can better forecast demand and adjust production levels accordingly, reducing excess inventory. Just-in-time production also allows companies to produce only what is needed when it is needed, reducing the need for large inventory levels. Production quotas have not been mentioned as a factor in reducing inventory levels.

Companies Have Recently Been Able to Reduce Inventory Levels Because