Cost savings from JIT inventory management include:
A) lower transaction fees.
B) lower raw material cost.
C) lower productivity.
D) lower inventory financing costs.

Question

Quizplus · Accepted Answer

JIT inventory management allows for lower inventory levels, which in turn reduces the financing costs associated with carrying excess inventory. Lower transaction fees and raw material costs are not necessarily direct benefits of JIT inventory management, and lower productivity is not a benefit at all.

Cost Savings from JIT Inventory Management Include