Which of the Following Statements Is True of Just-In-Time (JIT)

Multiple Choice

Which of the following statements is true of just-in-time (JIT) purchasing?

A) In JIT purchasing, the optimal safety-stock level is the quantity of safety stock that minimizes the sum of annual relevant stockout and carrying costs.
B) JIT purchasing is guided solely by the EOQ model because that model emphasizes the tradeoff between relevant carrying and ordering costs.
C) In JIT purchasing, raw materials (or goods) are purchased so that products are delivered just as needed for production or sales.
D) Only disadvantage of JIT purchasing is the higher level carrying and inspection costs.