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

Question

Quizplus · Accepted Answer

Just-in-time (JIT) manufacturing aims to reduce inventory levels as much as possible, including finished goods inventories. The goal is to have just enough inventory on hand to meet immediate customer demand, rather than keeping excess inventory on hand as a buffer. Therefore, finished goods inventories are immaterial in JIT manufacturing.

With JIT Manufacturing, Finished Goods Inventories Are