All of the following are potential financial benefits of just-in-time EXCEPT
A)lower investments in inventories.
B)higher investments in "efficient" storage space.
C)reducing the risk of rework.
D)reducing the handling costs of inventories.
E)reducing manufacturing lead time.

Question

Quizplus · Accepted Answer

Just-in-time does not require higher investments in "efficient" storage space. In fact, the goal of just-in-time is to reduce the need for storage space by having materials and products delivered exactly when they are needed. Therefore, option B is not a potential financial benefit of just-in-time.

All of the Following Are Potential Financial Benefits of Just-In-Time