Attempting to minimize holding costs by not taking possession of inventory until it is needed in the production process is referred to as ______________________.
A) Economic order quantity EOQ)
B) Online transaction processing OLTP)
C) Transportation management systems TMS)
D) Just-in-time JIT)

Question

Quizplus · Accepted Answer

Just-in-time (JIT) refers to a production strategy where inventory is only ordered or produced when it is needed for the production process. This helps to minimize holding costs associated with storing excess inventory. EOQ, OLTP, and TMS are all related to inventory management or supply chain management, but they do not specifically address the need to minimize holding costs through just-in-time production.

Attempting to Minimize Holding Costs by Not Taking Possession of Inventory