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Under a More Traditional System as Opposed to a Just-In-Time

Question 24

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Under a more traditional system as opposed to a just-in-time inventory system,warehousing parts for weeks before they are used will


A) reduce the total working capital required by a firm.
B) allow many defective parts to be produced before a problem is recognized.
C) result in a near error-free production process.
D) reduce the costs related to inventory holding.
E) reduce the need to write off excess unsold inventory against earnings.

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