Which of the following is not an anticipated benefit of switching to a Just-in-Time (JIT) production system?
A) Reduction in inventory holding costs.
B) Reduction of monitoring costs associated with the production system.
C) Reduction in customer-response time.
D) Increased sales due to increases in quality and customer satisfaction.
E) Reduction in internal failure costs, such as the cost of reworking defective outputs.

Question

Quizplus · Accepted Answer

The reduction of monitoring costs associated with the production system is not an anticipated benefit of switching to a JIT production system. JIT production systems require extensive monitoring and control to ensure that resources and materials are only ordered and used when needed. This is necessary in order to minimize inventory holding costs and maintain a lean production system. Therefore, reduction in monitoring costs is not a benefit of JIT, but rather an additional cost associated with implementing such a system.

Which of the Following Is Not an Anticipated Benefit of Switching