A JIT system ________.
A) reduces inventory turnover
B) reduces inventory holding costs
C) increases warehousing costs
D) increases buffer stock of inventory

Question

Quizplus · Accepted Answer

A JIT system leads to major cost savings from increasing inventory turnover and reducing inventory holding costs, such as warehousing and storage costs and the cost of capital tied up in inventory. One drawback of JIT systems is that they leave an organization without a buffer stock of inventory.

A JIT System ________