A just-in-time inventory system usually reduces costs for
A) both the producer and its suppliers.
B) suppliers.
C) the producer.
D) neither the supplier nor the producer, though it does lead to more flexibility for both.

Question

Quizplus · Accepted Answer

Just-in-time inventory systems allow producers to reduce the amount of inventory they hold, thus keeping their inventory costs down. However, the supplier must deliver the needed materials and parts just in time to be used in the production process. This calls for more effort on the supplier's part, and more costs.

A Just-In-Time Inventory System Usually Reduces Costs for