What does the JIT approach to inventory management achieve?
A)It allows greater flexibility as to when products can be manufactured.
B)It results in higher inventory levels and reduces ordering and setup costs.
C)It results in lower inventory carrying costs.
D)It allows fewer employees to be included in the production process.

Question

Quizplus · Accepted Answer

The JIT (Just-in-Time) approach to inventory management aims to reduce unnecessary inventory holding costs, which results in lower inventory carrying costs. This approach emphasizes the timely delivery of products to customers without any delay, and it reduces the amount of inventory that a business must hold on hand. This way, businesses only order inventory as per their current requirements, and it saves the costs of storing and managing unneeded stock. Hence, the JIT approach achieves lower inventory carrying costs.

What Does the JIT Approach to Inventory Management Achieve