Which production technique is named as affecting the inventory conversion cycle?
AJust-in-case systems
BJust-in-place systems
CJust-in-order systems
DJust-in-time systems
Answer & Solution
Correct answer: D. Just-in-time systems
1. The inventory conversion cycle counts the days stock is held.
2. Holding less stock shortens it.
3. Just-in-time inventory systems are named as having that impact.
4. Marketing and pricing strategies are said to matter too.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 19 'The Importance of Trade Credit and Working Capital in Planning', sections 19.1-19.5_
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