Early shipments to a company utilizing a JIT system result in
A) decreased production costs for the company.
B) stockouts for the company.
C) back orders for the company.
D) extra inventory for the company.

Question

Quizplus · Accepted Answer

In a JIT (Just-In-Time) system, inventory is minimized, so early shipments result in extra inventory, which contradicts the JIT principle of reducing inventory levels.

Early Shipments to a Company Utilizing a JIT System Result