Which of the Following Is True About Firms Using a Just-In-Time

Multiple Choice

Which of the following is true about firms using a just-in-time (JIT) inventory system?

A) A company is more likely to have excess unsold inventory that it has to write off against earnings.
B) Parts enter the manufacturing process immediately; they are not warehoused.
C) It is difficult to spot and fix defective inputs.
D) The amount of working capital a company needs to finance inventory increases.
E) A firm has ample buffer stock of inventory.