Rinker Audio Products is uncertain whether or not to introduce a just-in-time (JIT) inventory system. While the head of manufacturing is opposed to it, its CFO is pushing for its adoption. The basic philosophy behind just-in-time (JIT) inventory systems is to
A. economize on inventory holding costs.
B. reduce inventory turnover.
C. create a buffer stock of inventory.
D. reduce costs by reducing quality.
E. increase the total working capital requirement.
Answer: A. economize on inventory holding costs
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International Business
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