Which of the Following Is a Drawback of a Just-In-Time

question 30

Multiple Choice

Which of the following is a drawback of a just-in-time system?

• A) Transport costs are high when using a just-in-time system.
• B) It leaves a firm without a buffer stock of inventory.
• C) It increases the warranty costs associated with products.
• D) It leaves a firm with high scrap costs associated with defective products.

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Definitions:

Market Value

The market price at which you can currently trade a service or asset.

Future Earnings

The projected income or profits that an individual, company, or asset is expected to generate in the future.

Non-Monetary Considerations

Factors affecting decision-making that are not related to money, such as emotional well-being, social impact, or environmental concerns.

Human Capital

Investments in people, such as education and health care, that increase their productivity and earnings potential.