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    Cornerstones of Cost Management Study Set 3
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    Exam 20: Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints
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    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 57

Question 57

Multiple Choice

One of the traditional reasons for holding inventory is to avoid shutdowns due to unavailability of materials. The JIT solution is to


A) reduce setup costs.
B) reduce lead time.
C) use long-term contracts with suppliers.
D) use total preventive maintenance.

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