Cost savings from JIT inventory management include(s)
A)reduced overhead expenses.
B)lower inventory financing costs.
C)greater productivity.
D)All of the options

Question

Quizplus · Accepted Answer

JIT inventory management can lead to reduced overhead expenses, lower inventory financing costs, and greater productivity. By having inventory arrive exactly when needed and in the precise amount required, there is less need for storage space, handling, and tracking. This can reduce overhead costs. Additionally, since less inventory is being stored, there are lower inventory financing costs. Finally, by streamlining processes and reducing waste, productivity can be improved, leading to cost savings. Therefore, all of the options are correct.

Cost Savings from JIT Inventory Management Include(s)