Under ideal conditions, companies operating in a ____ environment would reduce inventories of raw materials, work in process and finished goods to very low levels or even zero.
A) volatile
B) just-in-time
C) traditional manufacturing
D) favorable

Question

Quizplus · Accepted Answer

Just-in-time environment is a manufacturing strategy in which materials and products are produced and delivered just in time to be used, reducing inventory levels to a minimum. This approach helps companies to reduce costs associated with holding inventory, such as storage, obsolescence, and damage, as well as to increase efficiency and responsiveness to customer demand. In contrast, traditional manufacturing involves stockpiling inventory, which can be costly and time-consuming to manage. A volatile environment would make it difficult to predict demand, and a favorable environment may not necessarily warrant reducing inventories to zero.

Under Ideal Conditions, Companies Operating in a ____ Environment Would