BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
A product with constant demand
|
|
|
A specilised product unique to each costumer
|
|
|
A product with unpredictable demand
|
|
|
A product with long delivery lead time
|
Detailed explanation-1: -The JIT inventory system is popular with small businesses and major corporations because it provides more efficient use of working capital and enhances cash flow. The JIT system can be especially helpful to small businesses that are just starting out.
Detailed explanation-2: -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-3: -One example of a JIT inventory system is a car manufacturer that operates with low inventory levels but heavily relies on its supply chain to deliver the parts it requires to build cars on an as-needed basis.
Detailed explanation-4: -The main advantages of JIT are that it can improve production efficiency and competitiveness. It does this by: preventing over-production. minimising waiting times and transport costs.