Identify the method followed by manufacturing firms to minimize inventories

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 6, Problem 1SSQ

To determine

Identify the method followed by manufacturing firms to minimize inventories

Expert Solution & Answer

Answer to Problem 1SSQ

b. Just-in-time

Explanation of Solution

Justification for incorrect option:

a. The quick response method is used by the manufacturers and retailers to communicate the inventory need to the supplier. Thus, this method does not minimize the inventory level. Hence, it is an incorrect option.

c. Just-in-case is an inventory management system under which the manufactures keeps buffers of inventory for unforeseen situation. This method increases the stock of inventory. Hence, it is an incorrect option.

d. Specific identification method identifies the cost of each item in ending inventory by separating purchases. This method is used to record the flow of inventory. Hence, it is an incorrect option.

Justification for correct option:

b. Just-in-time is a system of managing inventory by reducing the storing and moving inventory costs. It involves raw material purchase planning and careful management to stimulate a faster delivery of goods and attains customer satisfaction. Under this method inventory is ordered at the point of requirement. Hence, it is a correct option.

Conclusion

Therefore, the correct answer is option b.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Financial accounting

Hello tutor please given General accounting question answer do fast and properly explain all answer

Get correct answer with accounting question

Answer 2

Question

Chapter 6, Problem 1SSQ

To determine

Identify the method followed by manufacturing firms to minimize inventories

Expert Solution & Answer

Answer to Problem 1SSQ

b. Just-in-time

Explanation of Solution

Justification for incorrect option:

a. The quick response method is used by the manufacturers and retailers to communicate the inventory need to the supplier. Thus, this method does not minimize the inventory level. Hence, it is an incorrect option.

c. Just-in-case is an inventory management system under which the manufactures keeps buffers of inventory for unforeseen situation. This method increases the stock of inventory. Hence, it is an incorrect option.

d. Specific identification method identifies the cost of each item in ending inventory by separating purchases. This method is used to record the flow of inventory. Hence, it is an incorrect option.

Justification for correct option:

b. Just-in-time is a system of managing inventory by reducing the storing and moving inventory costs. It involves raw material purchase planning and careful management to stimulate a faster delivery of goods and attains customer satisfaction. Under this method inventory is ordered at the point of requirement. Hence, it is a correct option.

Conclusion

Therefore, the correct answer is option b.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 1SSQ

To determine

Identify the method followed by manufacturing firms to minimize inventories

Expert Solution & Answer

Answer to Problem 1SSQ

b. Just-in-time

Explanation of Solution

Justification for incorrect option:

a. The quick response method is used by the manufacturers and retailers to communicate the inventory need to the supplier. Thus, this method does not minimize the inventory level. Hence, it is an incorrect option.

c. Just-in-case is an inventory management system under which the manufactures keeps buffers of inventory for unforeseen situation. This method increases the stock of inventory. Hence, it is an incorrect option.

d. Specific identification method identifies the cost of each item in ending inventory by separating purchases. This method is used to record the flow of inventory. Hence, it is an incorrect option.

Justification for correct option:

b. Just-in-time is a system of managing inventory by reducing the storing and moving inventory costs. It involves raw material purchase planning and careful management to stimulate a faster delivery of goods and attains customer satisfaction. Under this method inventory is ordered at the point of requirement. Hence, it is a correct option.

Conclusion

Therefore, the correct answer is option b.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1SSQ

To determine

Identify the method followed by manufacturing firms to minimize inventories

Expert Solution & Answer

Answer to Problem 1SSQ

b. Just-in-time

Explanation of Solution

Justification for incorrect option:

a. The quick response method is used by the manufacturers and retailers to communicate the inventory need to the supplier. Thus, this method does not minimize the inventory level. Hence, it is an incorrect option.

c. Just-in-case is an inventory management system under which the manufactures keeps buffers of inventory for unforeseen situation. This method increases the stock of inventory. Hence, it is an incorrect option.

d. Specific identification method identifies the cost of each item in ending inventory by separating purchases. This method is used to record the flow of inventory. Hence, it is an incorrect option.

Justification for correct option:

b. Just-in-time is a system of managing inventory by reducing the storing and moving inventory costs. It involves raw material purchase planning and careful management to stimulate a faster delivery of goods and attains customer satisfaction. Under this method inventory is ordered at the point of requirement. Hence, it is a correct option.

Conclusion

Therefore, the correct answer is option b.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1SSQ

To determine

Identify the method followed by manufacturing firms to minimize inventories

Expert Solution & Answer

Answer to Problem 1SSQ

b. Just-in-time

Explanation of Solution

Justification for incorrect option:

a. The quick response method is used by the manufacturers and retailers to communicate the inventory need to the supplier. Thus, this method does not minimize the inventory level. Hence, it is an incorrect option.

c. Just-in-case is an inventory management system under which the manufactures keeps buffers of inventory for unforeseen situation. This method increases the stock of inventory. Hence, it is an incorrect option.

d. Specific identification method identifies the cost of each item in ending inventory by separating purchases. This method is used to record the flow of inventory. Hence, it is an incorrect option.

Justification for correct option:

b. Just-in-time is a system of managing inventory by reducing the storing and moving inventory costs. It involves raw material purchase planning and careful management to stimulate a faster delivery of goods and attains customer satisfaction. Under this method inventory is ordered at the point of requirement. Hence, it is a correct option.

Conclusion

Therefore, the correct answer is option b.

Answer 6

Chapter 6, Problem 1SSQ

To determine

Identify the method followed by manufacturing firms to minimize inventories

Expert Solution & Answer

Answer to Problem 1SSQ

b. Just-in-time

Explanation of Solution

Justification for incorrect option:

a. The quick response method is used by the manufacturers and retailers to communicate the inventory need to the supplier. Thus, this method does not minimize the inventory level. Hence, it is an incorrect option.

c. Just-in-case is an inventory management system under which the manufactures keeps buffers of inventory for unforeseen situation. This method increases the stock of inventory. Hence, it is an incorrect option.

d. Specific identification method identifies the cost of each item in ending inventory by separating purchases. This method is used to record the flow of inventory. Hence, it is an incorrect option.

Justification for correct option:

b. Just-in-time is a system of managing inventory by reducing the storing and moving inventory costs. It involves raw material purchase planning and careful management to stimulate a faster delivery of goods and attains customer satisfaction. Under this method inventory is ordered at the point of requirement. Hence, it is a correct option.

Conclusion

Therefore, the correct answer is option b.

Answer 7

Chapter 6, Problem 1SSQ

To determine

Identify the method followed by manufacturing firms to minimize inventories

Answer 8

Expert Solution & Answer

Answer to Problem 1SSQ

b. Just-in-time

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Justification for incorrect option:

a. The quick response method is used by the manufacturers and retailers to communicate the inventory need to the supplier. Thus, this method does not minimize the inventory level. Hence, it is an incorrect option.

c. Just-in-case is an inventory management system under which the manufactures keeps buffers of inventory for unforeseen situation. This method increases the stock of inventory. Hence, it is an incorrect option.

d. Specific identification method identifies the cost of each item in ending inventory by separating purchases. This method is used to record the flow of inventory. Hence, it is an incorrect option.

Justification for correct option:

b. Just-in-time is a system of managing inventory by reducing the storing and moving inventory costs. It involves raw material purchase planning and careful management to stimulate a faster delivery of goods and attains customer satisfaction. Under this method inventory is ordered at the point of requirement. Hence, it is a correct option.