Question

What type of inventory management system results in the medication arriving in a pharmacy shortly before it is required?

a) Just-in-Time (JIT)
b) FIFO (First-In, First-Out)
c) LIFO (Last-In, First-Out)
d) Randomized Inventory System

Answer 1

The Just-in-Time (JIT) inventory management system is designed to have materials like medication arrive at a pharmacy just before they're needed, reducing storage costs.

Step-by-step explanation:

The type of inventory management system that results in the medication arriving in a pharmacy shortly before it is required is a) Just-in-Time (JIT). This system focuses on reducing inventory costs by having materials arrive as they are needed, rather than maintaining large stocks. With JIT, a pharmacy can minimize the cost associated with storing medications that might not be used immediately.

This contrasts with the FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) systems which are accounting methods for valuing inventory, where FIFO assumes the oldest inventory is sold first, and LIFO assumes the most recently produced goods are sold first. A Randomized Inventory System does not have predictable patterns and would not ensure timely delivery based on demand.