Benefits of a JIT system include reduced throughput time

Question

Quizplus · Accepted Answer

JIT (Just-In-Time) approaches to stock management aim to reduce inventory levels and improve overall efficiency in supply chain management. By implementing a JIT system, companies can reduce the amount of time it takes to produce and distribute their products, and avoid the costs associated with excess inventory. This leads to reduced throughput time, which is the time it takes for a product to flow through the entire supply chain, from raw materials to finished goods. Therefore, the statement is true.

Benefits of a JIT System Include Reduced Throughput Time