With JIT manufacturing, finished goods inventories are
A) kept high to avoid stockouts.
B) held in various locations for faster delivery to customers.
C) insignificant.
D) kept high to let the company take advantage of volume discounts.

Question

Quizplus · Accepted Answer

JIT manufacturing focuses on reducing waste and improving efficiency by producing goods only when they are needed. This means that finished goods inventories are often kept low or even eliminated altogether, as having extra inventory adds to costs and can lead to waste. Therefore, the correct answer is C, as finished goods inventories are typically insignificant under JIT manufacturing.

With JIT Manufacturing, Finished Goods Inventories Are