With just-in-time inventory,what does a firm attempt to do?
A)Produce each item only as needed for the next step in the production process.
B)Time purchases so that items arrive just in time for production.
C)Time purchases so that items arrive just in time for sale.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

Just-in-time inventory is a method used by firms to reduce inventory carrying costs by purchasing and producing items only as they are needed in the production process or for sale. This means that the firm times purchases and production so that items arrive just in time. Therefore, both options A and B are correct. Additionally, some firms may also time purchases so that items arrive just in time for sale, but this is less common and not necessary for just-in-time inventory. Therefore, option C is incorrect.

With Just-In-Time Inventory,what Does a Firm Attempt to Do