Question

When a business is able to simultaneously reduce inventory holding costs and increase customer satisfaction by making products available exactly when a customer wants them, it is likely using______________.

Answer 1

The correct answer is letter "B": Just-In-Time inventory management.

Step-by-step explanation:

Just-in-time (JIT) is a method of supplying goods as close to when they are necessary. This means products arrive for a reselling business shortly before they hit the shelf for consumer purchases. It means components and raw materials arrive for a production business only before they are added to the finished product.

If a company has less inventory in hand, it has more cash and credit available for other purposes.