All of the following are potential financial benefits of just-in-time EXCEPT:
A)lower investments in plant space for inventories.
B)lower investments in inventories.
C)reducing the risk of obsolescence of products.
D)reducing manufacturing lead time.

Question

Quizplus · Accepted Answer

Just-in-time does not necessarily reduce the risk of obsolescence of products, as it focuses on producing the exact amount needed in the moment. If demand for a particular product declines unexpectedly, there may still be excess inventory that becomes obsolete. However, the other options listed (A, B, and D) are all potential financial benefits of just-in-time.

All of the Following Are Potential Financial Benefits of Just-In-Time