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

Question

Quizplus · Accepted Answer

Just-In-Time (JIT) inventory management involves the delivery of materials and goods at the exact time they are needed. This method avoids excess inventory, which incurs storage and maintenance costs, reduces the need for warehouse space, and lowers inventory financing costs by minimizing the amount of capital tied up in inventory. Moreover, by reducing the need for excess inventory, JIT inventory management can improve productivity by freeing up resources that would have been spent on managing excess inventory. Thus, all of the options- reduced overhead expenses, lower inventory financing costs, and greater productivity- are true with respect to cost savings from JIT inventory management.

Cost Savings from Just-In-Time (JIT) Inventory Management Include(s)