Question

supply Chain Management textbook JIT inventory systems is to economies on inventory holding costs by having materials arrive at a manufacturing plant just in time to enter the production process and not before. This _______ the amount of of working capital it needs to finance inventory.

Answer 1

Answer:

The correct answer is decreases.

Explanation:

In a Just-in-time system, waste is defined as any activity that does not add value to the customer. It is the use of resources above the necessary theoretical minimum (labor, equipment, time, space, energy). Excess stocks, preparation times, inspection, movement of materials, transactions or rejections can be wasted.

It is not a project at all, but a process. It is not a list of things to do, but a process that helps establish an order of priorities in what is done. The purpose of the JIT method is to improve a company's ability to respond economically to change.

The conventional description of JIT as a system for manufacturing and supplying goods that are needed, when needed and in the quantities exactly needed.