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 nor the producer, though it does lead to more flexibility for both.

Question

Quizplus · Accepted Answer

A just-in-time inventory system is designed to reduce costs for the producer by minimizing inventory holding costs, reducing waste and increasing efficiency. However, this system can increase costs for suppliers as they are required to have a more flexible and efficient production process to meet the producer's demands. Thus, the system benefits the producer but not necessarily its suppliers.

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