It Is Well Documented That JIT Reduces Physical Inventory Level

question 24

True/False

It is well documented that JIT reduces physical inventory level. Reductions in physical inventory will also have a favorable impact on:
Reduced insurance premiums associated with the storage of inventory.Reduced inventory holding costs.Reduced labor cost in store rooms and material handing costs.Reduced clerical and administrative costs.Reduced waste from the manufacturing process.Reduced obsolescence costs.Reduced deprecation of handling and storage equipment.ach of the cost savings will result in a leaner more profitable operation.

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Definitions:

Import Restrictions

Measures by governments to control the quantity or quality of goods and services coming into a country to protect domestic industries from foreign competition.

Japanese Manufacturers

Refers to companies based in Japan that are involved in the production of goods across various industries, known for innovation and quality.

Profit Margins

The percentage of revenue that remains as profit after all costs and expenses are subtracted from total sales.

Tariff

A tax imposed by a government on goods and services imported from other countries, affecting trade.