A system in which companies purchase raw materials only when needed is called
A) ABC.
B) Traditional production system
C) internal failure costs.
D) JIT production.

Question

Quizplus · Accepted Answer

JIT (Just-In-Time) production is a philosophy and strategy that aims to minimize waste and maximize efficiency by producing only what is needed, when it is needed. This includes purchasing raw materials only when they are needed in the production process. This system helps to reduce inventory costs and improve cash flow, as well as increase flexibility and responsiveness to customer demand.

A System in Which Companies Purchase Raw Materials Only When