One of the Advantages of a Just in Time Inventory

question 56

Multiple Choice

One of the advantages of a just in time inventory system is that it reduces inventory quantities.Why is this considered to be a benefit?

• A)Carrying inventory incurs storage costs, hence reducing inventory quantities reduces costs.
• B)Carrying large inventory raises the risk that customers will want an item that you do not have.
• C)Carrying large inventory reduces the risk that customers will want an item that you do not have.
• D)None of the above.

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