Which of the following is a disadvantage of 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 often lose sales because of little or no inventory buffers.

Question

Quizplus · Accepted Answer

JIT management system relies heavily on timely deliveries and low inventory levels. As a result, it is quite possible that the system may fail to meet customer demand during periods of high demand, which can result in a loss of sales.

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