Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products. Sales of Sparkle, its flagship disinfectant, and some of its other cleaning products have been sluggish during the last two quarters. Of late, retailers have also shown a lack of confidence in these product lines. The management is looking at different ways to improve the efficiency of its entire supply chain. Some senior executives believe that the company should shift to a just-in-time logistics system. However, this opinion does not have unanimous support.
Which of the following, if true, would weaken the argument for the shift to a just-in-time logistics system?
Carrying too much inventory results in higher-than-necessary inventory-carrying costs.
Under the new system, the company would have inventory sufficient for fewer days of operations.
Clean Sweep's most important suppliers prefer a flexible supply schedule.
Implementing the system would require an extensive overhaul of the existing supply chain.
Demand for Clean Sweep's products is stable and predictable.
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