ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A large number of stock is stored, costing the business storage costs
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Just in time
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Just in case
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Just in case (JIC) is an inventory strategy where companies keep large inventories on hand. This strategy minimizes the probability that a product will sell out of stock. A company that uses this strategy typically has difficulty predicting consumer demand or experiences large surges in demand at unpredictable times.
Detailed explanation-2: -Companies use just-in-time inventory to reduce excess supply and create a lean production process, while just-in-case inventory is used to avoid running out of stock due to a sudden increase in demand. Both strategies provide companies with benefits, but there are drawbacks, as well.
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