BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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large amounts of inventory on hand so that the company does not run out of it
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small amounts of inventory on hand resulting in lower quality goods because production is rushed
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reducing investment in inventory and increasing the emphasis on quality
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both b and c
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Detailed explanation-1: -Greater Productivity: JIT enhances productivity by reducing the time and resources involved in manufacturing processes. Faster Product Turnaround: Manufacturers can more quickly produce products. Shorter Production Runs: With JIT, manufacturers can deliver new products more quickly and easily.
Detailed explanation-2: -JIT manufacturing helps organizations control variability in their processes, allowing them to increase productivity while lowering costs. JIT manufacturing is very similar to Lean manufacturing, and the terms are often used synonymously.
Detailed explanation-3: -Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as they are needed. The main objective of this method is to reduce inventory holding costs and increase inventory turnover.
Detailed explanation-4: -The just-in-time (JIT) inventory system minimizes inventory and increases efficiency. JIT production systems cut inventory costs because manufacturers receive materials and parts as needed for production and do not have to pay storage costs.