A level Chap 24

This word describes inventories that partially done at certain stage of production.

Following are the possible cost of holding inventories except?

• Inventories left unsold

• Insurance of warehouses

• Delaying production line

• Less capital to finance new project

It indicates inventories kept for any urgency use or unexpected increase in demand.

This word(s) describe the highest limit firm can store their inventories due to perhaps space constraint.

Just-in-case inventory management allows lesser buffer inventories to minimize storage cost.

• True

• False

The duration between process order till delivery of materials received is called..

Provide one condition for JIT system to operate successfully.

This word(s) describe an inventory management where components arrive just as they are needed in production.

This word(s) define a traditional method of inventory control where business hold high buffer inventories to avoid run out of stocks.

Explain one benefit of effective supply chain management to a business.