KTI Gadgets doesn't store its supplies at its production center; instead, it has suppliers deliver supplies on an as-needed basis. What is the most important benefit of using a model like this?
A) reduces reliance on materials requirement planning
B) decreases costs associated with storage
C) improves speed of Six Sigma analysis
D) enhances bill of materials processing
E) increases form utility of finished goods

Question

Quizplus · Accepted Answer

The most important benefit of using a model where supplies are delivered on an as-needed basis, like the one KTI Gadgets employs, is that it decreases costs associated with storage. This is because the company does not need to maintain large storage facilities for its supplies, thereby saving on storage space, inventory management, and related costs.

KTI Gadgets Doesn't Store Its Supplies at Its Production Center;