All of the following are potential financial benefits of just-in-time EXCEPT:
A)lower investments in inventories
B)lower investments in plant space for inventories
C)reducing the risk of obsolescence
D)reducing manufacturing lead time

Question

Quizplus · Accepted Answer

While just-in-time can provide several financial benefits, reducing the risk of obsolescence is not necessarily one of them. In fact, if inventory levels are kept very low, there may be a greater risk of stock becoming outdated before it can be sold. Therefore, option C is not a potential financial benefit of just-in-time. The other options (A, B, and D) are all potential financial benefits of just-in-time, as they can help to reduce costs and increase efficiency.

All of the Following Are Potential Financial Benefits of Just-In-Time