Which of the following is NOT an advantage of just-in-time inventory management?
A) Surplus inventory is maintained to prevent production shut-down in case of supply interruption
B) Lower inventory levels reduce storage cost
C) Inventory kept for shorter periods of time reduces the amount of goods that become obsolete
D) Reduce the amount of insurance needed for lower levels of inventory

Question

Quizplus · Accepted Answer

Just-in-time inventory management aims to minimize inventory levels and eliminate excess inventory. Keeping surplus inventory goes against this principle, so A is the correct answer as it contradicts the advantages of just-in-time inventory management. B, C, and D are all advantages of just-in-time inventory management.

Which of the Following Is NOT an Advantage of Just-In-Time