Question

A new purchasing system for just-in-time production requirements has been proposed. Users want access to current master file information at all times. To satisfy user needs, master file changes should be implemented with:


A. Periodic entry with subsequent batch processing

B. Periodic entry with immediate batch processing

C. Online entry with subsequent batch processing.

D. Online entry with immediate processing

Answer 1

Answer:

D. Online entry with immediate processing.

Explanation:

Just in time is an inventory technique that is used to reduce the amount of inventory that a business has on hand. The business forecasts it's need and makes provision to meet it. An advantage of this is that it reduces inventory storage costs.

The data in this technique needs to be current, so online entry is done with immediate processing. This ensures that the master file is always updated to effectively meet business needs of inventory.