Despite the increased use of JIT systems,there are several benefits or advantages to having inventory,they include:
A) Make possible smooth and efficient operations by decoupling individual segments of the total operation
B) Inventories of parts and components produced in-house facilitates economical production runs in various machine-assembly stations
C) Provides "safety" stock for supply interruptions
D) Finished goods inventory help the marketing/sales department satisfy unexpected customer demand to avoid stockouts
E) All of the above

Question

Quizplus · Accepted Answer

All the options A, B, C, and D are advantages of having inventory. Inventory helps in smoothing production and operations by providing decoupling between segments, facilitates economical production runs, provides safety stock for supply interruptions, and helps in satisfying unexpected customer demand.

Despite the Increased Use of JIT Systems,there Are Several Benefits