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

question 119

Multiple Choice

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

• A)It results in a decrease in production space.
• B)It increases the inventory cost.
• C)The risk of the inventory becoming obsolete is very high.
• D)The users of this system sometimes lose sales because of little or no inventory buffers.

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Definitions:

Invisible Hand

A term introduced by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests benefit society as a whole.

Competition

The rivalry among businesses to attract customers, which can lead to improved quality, lower prices, and innovation.

Social Interest

The welfare or well-being of the general public and society at large, considering the collective needs rather than individual interests.

No Personal Financial Responsibility

A situation where individuals do not bear direct financial consequences for their actions, often due to insurance, subsidies, or other protective measures.