A just-in-time (JIT)inventory system attempts to reduce inventory levels to the absolute minimum by:
A) purchasing and accepting inventory before it is sold to a customer.
B) delaying the shipment of the completed product to the customer.
C) keeping safety stock in case the estimate exceeds the demand.
D) assembling the product in the absolute minimum time possible.

Question

Quizplus · Accepted Answer

JIT inventory system focuses on minimizing the inventory levels and reducing the time it takes to produce and deliver products. Therefore, the choice that fits this description is assembling the product in the absolute minimum time possible (option D). This approach helps to reduce the cost of inventory storage and increase efficiency in the production process. Options A, B, and C, do not align with the JIT philosophy.

A Just-In-Time (JIT)inventory System Attempts to Reduce Inventory Levels to the Absolute