Which of the following is the major benefit to a firm of using just-in-time inventory management?
A)minimizes the risk of stock-outs
B)minimizes the total number of orders that the firm places
C)reduces acquisition costs for placing goods in inventory
D)largely eliminates the carrying costs of maintaining a large inventory
E)reduces the time needed to acquire inventory

Question

Quizplus · Accepted Answer

Just-in-time inventory management largely eliminates the carrying costs of maintaining a large inventory, which can be a significant cost for a firm. It also reduces the risk of inventory obsolescence and reduces the need for warehouse space. However, it can also increase the risk of stock-outs and requires a highly reliable supply chain.

Which of the Following Is the Major Benefit to a Firm