Early shipments to a company utilizing a JIT system result in
A) stockouts for the company.
B) back orders for the company.
C) extra inventory for the company.
D) decreased production costs for the company.

Question

Quizplus · Accepted Answer

In a JIT (Just-In-Time) system, inventory is minimized to reduce holding costs. Early shipments lead to extra inventory, which contradicts the JIT principle of receiving goods only as needed.

Early Shipments to a Company Utilizing a JIT System Result