The benefits of a just-in-time system would include all of the following except:
A) increased warehousing costs.
B) reduced inventory holding costs.
C) improved customer satisfaction.
D) reduced warehousing costs.

Question

Quizplus · Accepted Answer

A just-in-time system is designed to reduce inventory holding costs by only ordering and receiving materials as they are needed in the production process. This reduces the need for large warehouses to store excess inventory. Therefore, the benefits of a just-in-time system include reduced inventory holding costs, improved customer satisfaction due to faster production and delivery times, and reduced warehousing costs since less storage space is needed. However, it does not increase warehousing costs.

The Benefits of a Just-In-Time System Would Include All of the Following