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

QUESTION

Which of the following is true about firms using 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.

ANSWER

B