In a JIT system, the firm's inventory of inputs are
A) kept at the lowest level possible.
B) purchased from a single supplier.
C) kept at the highest level possible.
D) kept in nearby warehouses.

Question

Quizplus · Accepted Answer

In a JIT system, inventory of inputs is kept at the lowest level possible, as the inputs are delivered just in time for production. This helps to reduce waste and costs. Purchasing from a single supplier and keeping inventory in nearby warehouses may be part of the JIT system, but they do not directly relate to the inventory level of inputs. Keeping inventory at the highest level possible goes against the principles of JIT.

In a JIT System, the Firm's Inventory of Inputs Are