Which of the following, if True, would weaken the argument for the shift to a just-in-time logistics system?
A) Carrying too much inventory results in higher-than-necessary inventory-carrying costs.
B) Under the new system, the company would have inventory sufficient for fewer days of operations.
C) Clean Sweep's most important suppliers prefer a flexible supply schedule.
D) Implementing the system would require an extensive overhaul of the existing supply chain.
E) Demand for Clean Sweep's products is stable and predictable.

Question

Quizplus · Accepted Answer

D) Choice D weakens the argument since the benefits of a just-in-time system could be outweighed by the costs of re-engineering the entire supply chain. Choice A: A just-in-time system is designed to lower inventory-carrying costs, so Choice A would strengthen the argument. Choice B describes the system accurately but provides no reason not to adopt it. Choice C would strengthen the argument by suggesting that the transition could be easy. Choice E strengthens the argument by suggesting that it will be possible to operate with lower inventory levels.

Which of the Following, If True, Would Weaken the Argument