Just-in-time inventory management typically pushes the cost of holding inventory from the manufacturer to the manufacturer's suppliers.

Question

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Just-in-time inventory management relies on suppliers to provide materials and components exactly when they are needed, which reduces the need for the manufacturer to hold large amounts of inventory. However, this means that suppliers must hold inventory and be ready to deliver on short notice, pushing the cost of inventory from the manufacturer to the suppliers.

Just-In-Time Inventory Management Typically Pushes the Cost of Holding Inventory