Question

Companies that start a just-in-time inventory system are seeking to __________.
a. reduce the size of the inventory they carry.
b. increase the size of the inventory they carry.
c. maintain their normal inventory levels.
d. avoid the need to provide customized products.

Answer 1

Answer:

Option A

Reduce the size of the inventory they carry.

Explanation:

The just in time system is a method of production where goods are produced just to meet the needs of customer at exactly when they are needed.

In contrast to the traditional production system where goods are are produced in advance of customers order, Just in time seeks to reduce  all the inefficiencies and cost associated with keeping inventories .

Hence it aims to reduce the size of the inventory to be carried

Answer 2

Answer:

The answer is A. reduce the size of the inventory they carry

Explanation:

In a management strategy that aligns raw material order from suppliers directly with production schedules. Companies use this inventory strategy to increase efficiency and decrease waste by receiving goods only as they need them for the production process, which reduces inventory cost.