The just-in-time (JIT) approach to inventory management
A)allows greater flexibility as to when products can be manufactured.
B)results in higher inventory levels but reduces ordering and setup costs.
C)results in lower inventory carrying costs.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

The JIT approach to inventory management aims to reduce inventory carrying costs by only ordering and producing what is needed when it is needed. This allows for greater efficiency in production and reduces the risk of holding excess inventory. Therefore, choice C is correct as it states that JIT results in lower inventory carrying costs. Choices A and B are incorrect as they suggest increased flexibility and inventory levels, respectively, which go against the JIT philosophy.

The Just-In-Time (JIT) Approach to Inventory Management