Answer the following questions:
Because of a new product line, your company’s sales over the last few months have increased significantly. As a result, the amount of cash held by the company has increased to levels never experienced before. An evaluation by the company’s financial staff concludes that the company is holding too much cash. This situation is reported to the stockholders.
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Just-in-time (JIT) inventory systems were first developed by the Japanese and quickly adopted around the globe by many large firms. One of the first to adopt the system in the United States was the automobile industry.