Which of the following is NOT an advantage of just-in-time inventory management?
A) Inventory kept for shorter periods of time reduces the amount of goods that become obsolete
B) Lower inventory levels and reduce storage cost
C) Surplus inventory is maintained to prevent production shut-down in case of supply interruption
D) Reducing the amount of insurance needed for lower levels of inventory

Question

Quizplus · Accepted Answer

Surplus inventory is not maintained in just-in-time inventory management as it goes against the principle of minimizing inventory to reduce costs. Instead, JIT relies on efficient supply chains and quick replenishment of raw materials to prevent production shut-downs.

Which of the Following Is NOT an Advantage of Just-In-Time