Many companies use just-in-time inventory methods.Which of the following is not an advantage of this method?
A)It limits the risk of having obsolete items in inventory.
B)Companies may not have quantities to meet customer demand.
C)It lowers inventory levels and costs.
D)Companies can respond to individual customer requests.

Question

Quizplus · Accepted Answer

Just-in-time inventory methods can lead to situations where companies do not have enough stock to meet unexpected customer demand, which is a disadvantage, not an advantage.

Many Companies Use Just-In-Time Inventory Methods