Question

Inventory turnover rates for 4 establishments are as follows: A: 2; B: 4; C: 6; D: 3. Which of these establishments is most likely to use the Just-In-Time purchasing system?

A) Establishment A
B) Establishment B
C) Establishment C
D) Establishment D

Answer 1

Establishment C, with the highest inventory turnover rate of 6, is most likely to use the Just-In-Time purchasing system.

Step-by-step explanation:

The establishment that is most likely to use the Just-In-Time (JIT) purchasing system is the one with the highest inventory turnover rate. Inventory turnover rate is a measure of how quickly a company sells and replaces its inventory over a given period. A higher rate implies a faster movement of goods and, often, more efficient inventory management practices associated with JIT systems. Therefore, Establishment C, with an inventory turnover rate of 6, is the most likely to be using a JIT purchasing system.