With the cost of warehouse space and maintaining inventory increasing, Randall has decided to change the operation of his company to a "just-in-time" (JIT) mode, whereby manufacturing is initiated only upon customer order and only in very small lots, minimizing the company's warehouse and inventory costs. However, Randall is nervous about the change because he knows that JIT offers costs savings only when the costs of storing product are greater than the costs of
A. rework.
B. TQM.
C. large batches.
D. small batches.
E. frequent delivery.
Answer: E
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