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  3. Study Set
    Cornerstones of Cost Management Study Set 3
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    Exam 20: Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints
  5. Question
    One of the Traditional Reasons for Holding Inventory Is to Avoid
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One of the Traditional Reasons for Holding Inventory Is to Avoid

Question 3

Question 3

Multiple Choice

One of the traditional reasons for holding inventory is to avoid a shutdown due to machine failure. The JIT solution is to


A) reduce setup costs.
B) reduce lead time.
C) use total preventive maintenance.
D) use total quality control.

Correct Answer:

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