A just-in-time inventory system usually reduces costs for:
A)both the producer and its suppliers.
B)suppliers,but not the producer.
C)the producer,but not its suppliers.
D)neither the supplier or the producer,though it does lead to more flexibility for both.

Question

Quizplus · Accepted Answer

A just-in-time inventory system allows producers to reduce inventory holding costs, which can lower production costs. However, suppliers may have to adjust their own inventory and production systems to meet the producer's needs, which can require additional costs for them. Therefore, the primary cost savings are for the producer, not the suppliers.

A Just-In-Time Inventory System Usually Reduces Costs For