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

Question

Quizplus · Accepted Answer

Just-in-time inventory management largely eliminates the carrying costs of maintaining a large inventory, which can include the cost of storage, insurance, and obsolescence. While it may also lead to fewer stock-outs and reduced acquisition costs, the primary benefit is the reduced carrying costs.

Which of the Following Is the Major Benefit to a Firm